The empowered group of ministers on telecom spectrum, which met today, is likely to take a decision on pricing and one-time fee for telecom operators on Friday, when it will meet again.
The cabinet on July 3 referred to the ministerial panel the proposal to charge mobile phone carriers a one-time fee for their existing second-generation airwave holdings, based on a price to be determined by an upcoming auction.
The union cabinet will take the final call on the prices of telecom spectrum and one-time fees payable by incumbent telcos.
Any decision to charge a one-time fee would hit those mobile phone carriers, including Bharti Airtel, Vodafone's local unit and Reliance Communications, that are not affected by a Supreme Court order to revoke permits granted in a scandal-tainted 2008 sale and are not required to bid in the auction.
However, analysts expect Bharti Airtel to withstand the one-time fee shock better than peers. The company’s share price gained over 6 per cent over the past couple of days.
The government will sell 2G airwaves for the first time through an open auction, due by the end of August, following the Supreme Court order. Eight carriers which are set to lose some or all of their permits after the court order must bid in the auction to win those back.
The telecom ministry has proposed asking all mobile phone operators to pay for their existing airwaves based on the auction-determined price for the remaining validity of their telecom permits, in what government officials say is aimed at creating a level playing field.
India offers telecom permits for 20 years.
The panel of ministers, which also has the final say on the auction rules, is yet to decide the base bidding price. The telecom regulator had suggested an auction starting price that is nearly 10 times higher than what carriers paid in the 2008 sale, drawing howls of protests from the industry.
The panel's decision on the one-time fee will, however, have to be passed back to the cabinet for final approval.
The Supreme Court has set a deadline on August 31 for the auction process to be completed. But an inter-ministerial committee has indicated that at the present pace of decision making the deadline is likely to be missed. The government may have to seek an extension of the deadline from the apex court.
With inputs from agencies
The empowered group of ministers on telecom spectrum, which met today, is likely to take a decision on pricing and one-time fee for telecom operators on Friday, when it will meet again.
The cabinet on July 3 referred to the ministerial panel the proposal to charge mobile phone carriers a one-time fee for their existing second-generation airwave holdings, based on a price to be determined by an upcoming auction.
The union cabinet will take the final call on the prices of telecom spectrum and one-time fees payable by incumbent telcos.
Any decision to charge a one-time fee would hit those mobile phone carriers, including Bharti Airtel, Vodafone's local unit and Reliance Communications, that are not affected by a Supreme Court order to revoke permits granted in a scandal-tainted 2008 sale and are not required to bid in the auction.
However, analysts expect Bharti Airtel to withstand the one-time fee shock better than peers. The company’s share price gained over 6 per cent over the past couple of days.
The government will sell 2G airwaves for the first time through an open auction, due by the end of August, following the Supreme Court order. Eight carriers which are set to lose some or all of their permits after the court order must bid in the auction to win those back.
The telecom ministry has proposed asking all mobile phone operators to pay for their existing airwaves based on the auction-determined price for the remaining validity of their telecom permits, in what government officials say is aimed at creating a level playing field.
India offers telecom permits for 20 years.
The panel of ministers, which also has the final say on the auction rules, is yet to decide the base bidding price. The telecom regulator had suggested an auction starting price that is nearly 10 times higher than what carriers paid in the 2008 sale, drawing howls of protests from the industry.
The panel's decision on the one-time fee will, however, have to be passed back to the cabinet for final approval.
The Supreme Court has set a deadline on August 31 for the auction process to be completed. But an inter-ministerial committee has indicated that at the present pace of decision making the deadline is likely to be missed. The government may have to seek an extension of the deadline from the apex court.
With inputs from agencies
The empowered group of ministers on telecom spectrum, which met today, is likely to take a decision on pricing and one-time fee for telecom operators on Friday, when it will meet again.
The cabinet on July 3 referred to the ministerial panel the proposal to charge mobile phone carriers a one-time fee for their existing second-generation airwave holdings, based on a price to be determined by an upcoming auction.
The union cabinet will take the final call on the prices of telecom spectrum and one-time fees payable by incumbent telcos.
Any decision to charge a one-time fee would hit those mobile phone carriers, including Bharti Airtel, Vodafone's local unit and Reliance Communications, that are not affected by a Supreme Court order to revoke permits granted in a scandal-tainted 2008 sale and are not required to bid in the auction.
However, analysts expect Bharti Airtel to withstand the one-time fee shock better than peers. The company’s share price gained over 6 per cent over the past couple of days.
The government will sell 2G airwaves for the first time through an open auction, due by the end of August, following the Supreme Court order. Eight carriers which are set to lose some or all of their permits after the court order must bid in the auction to win those back.
The telecom ministry has proposed asking all mobile phone operators to pay for their existing airwaves based on the auction-determined price for the remaining validity of their telecom permits, in what government officials say is aimed at creating a level playing field.
India offers telecom permits for 20 years.
The panel of ministers, which also has the final say on the auction rules, is yet to decide the base bidding price. The telecom regulator had suggested an auction starting price that is nearly 10 times higher than what carriers paid in the 2008 sale, drawing howls of protests from the industry.
The panel's decision on the one-time fee will, however, have to be passed back to the cabinet for final approval.
The Supreme Court has set a deadline on August 31 for the auction process to be completed. But an inter-ministerial committee has indicated that at the present pace of decision making the deadline is likely to be missed. The government may have to seek an extension of the deadline from the apex court.
With inputs from agencies
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