Aircel challenges against hike in spectrum usage charge (India)

A leading telecom operator Aircel has joined with Other three service providers -- Bharti, Vodafone and Idea -- and moved Supreme Court against hike in spectrum usage charge.

According to reports, the bench, headed by Chief Justice SH Kapadia, has now sought a response from the Department of Telecommunications ( DoT)on the matter, and a date of 27 January 2011 has been set for hearing not only Aircel’s case, but also the petitions from the other three aforementioned cellcos.

The development comes after reports last month that the Supreme Court had stayed an order made by the TDSAT which upheld increases in the charges for 2G spectrum usage. The ruling followed an appeal against TDSAT’s decision by the three GSM operators, prompted by the DoT’s February 2010 unveiling of revised spectrum charges for both GSM and CDMA operators; the DoT proposed an increase of up to 50%, with the charge rising to between 3% and 8% of revenue.

Vodafone has to pay US$30.01 million and the two Bharti firms have a joint liability of US$48.92 milion on account of enhanced spectrum usage charges.

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