Shares of Bharti Airtel and Vodafone Idea rose 3.26 per cent and 7 per cent, respectively, following the government’s announcement of a one-time spectrum tariff (OTSC) of Rs 40,000 crore imposed on telecom companies. The Department of Telecommunications (DoT) has asked for three weeks to reconsider its decision to impose a fine on telecom companies Airtel and Vodafone Idea for delaying the payment of a one-time spectrum fee.
A one-time spectrum charge is the fee that operators have to pay for keeping the radiowave above a specified limit. Bharti Airtel has an OTSC balance of Rs 8,414 crore and Vodafone Idea has set its OTSC collection of Rs 4,389.8 crore by the end of March 2021.
The spectrum tariff issue dates back to 2012, when the Supreme Court revoked 122 telecommunications permits in the wake of the 2G scandal and declared radios to be public waves distributed through auction.
“The federal government wants to reconsider or reconsider his decision to proceed with the current proceedings of the appeal,” the affidavit filed in the federal Supreme Court said. The telecom ministry told the apex court that the Rs 40,000 crore OTSC would add to the financial burden of telecom companies. Most telecom service providers have suffered huge losses and the telecom sector is under stress despite government relief measures.
Shares of Vodafone Idea traded up 2.63 per cent at Rs 11.73 and Bharti Airtel traded up 2.66 per cent at Rs 699.20, up 0.54 per cent from the Sensex at 2:23 pm.