DoT Seeks Clarity on Levying Fee

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 DoT Seeks Clarity

The department of Telecom has sought legal opinion on levy of Rs. 436 crore one-time license rate on an Airtel subsidiary, which bought extra 4G footprint thru an acquisition and is now being merged with father or mother.

Airtel Broadband services and products (ABSPL) holds broadband Wi-Fi get entry to (BWA) spectrum in Delhi, Mumbai, Kerala and Haryana that can be used for 4G services and Airtel has proposed merger of this subsidiary with itself.

While an Airtel spokesperson declined to remark, a government authentic stated: “the choice on merger shall be taken in response to legal opinion. There may be complexity in it.

“ABSPL holds internet services and products license which does not permit voice telephony. Airtel will operate beneath Unified License (UL) which permits all services and products. Clarity is required if ABSPL will have to be charged Rs. 436 crore migration fee.”

Airtel had acquired Wireless industry products and services Pvt Ltd, an organization based through US chip maker Qualcomm, and renamed it as ABSPL.

“There may be additionally clarity required if merger of ABSPL with Airtel will mean migration of an ISP license holder to UL. As per phrases and conditions of public sale, companies had been allowed to use BWA spectrum as per license they cling however Airtel bought an organization which has ISP allow and no longer the spectrum immediately,” the legitimate said.

DoT Seeks Clarity on Levying Fee on Airtel-ABSPL Merger

Sources noted the instance of Reliance Jio Infocomm having paid Rs. 1,673.43 crore for moving from internet service supplier (ISP) license to universal license.

Pursuant to ABSPL merger, Airtel must give up extra spectrum to conform to spectrum cap rule.

Underneath present spectrum rule, a company can’t grasp greater than 25 % of whole spectrum assigned to all corporations in a circle and over 50 % of complete spectrum assigned in a particular frequency band.

The supply introduced that as per current scenario, Airtel may want to give up some spectrum in Mumbai for which it is going to no longer get any refund or adjustment.

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