Tata Tele to surrender CDMA spectrum in all but Delhi, Mumbai circles

BANGALORE, INDIA: Tata Teleservices has decided to surrender its CDMA spectrum in 800 MHz beyond 2.5 MHz in all 15 circles, except Mumbai and Delhi to mark its 'protest' against Department of Telecom's one-time spectrum licence fee.

"Tata Teleservices, under protest and without prejudice, has intimated its decision to the DoT to surrender spectrum in the CDMA 800 MHz beyond 2.5 MHz in all circles except Mumbai and Delhi. In these two metros the company will retain one additional carrier (1.25 MHz) beyond 2.5 MHz for the balance period of licences. The company stands committed to ensuring that this will not adversely affect network or service quality and is looking to deploy additional capex to offset the reduced spectrum availability," as per an official statement from Tata Teleservices spokesperson.

The company has also sought and obtained stays against the DoT demand for one time spectrum charges above 2.5 MHz in the CDMA 800 MHz band in the High Courts of Kolkata and Mumbai.

The one-time fee, which totals Rs 28,000 crore, to be levied for excess spectrum that telecom operators hold was approved by the government in December 2012. Accordingly, Tata Tele is estimated to pay approximately Rs 1152 crore.

Reliance Communications (RCom), which had recently obtained stay order till April 19, 2013 against DoT's one-time spectrum fee from the Calcutta High Court, declined to comment. RCom is supposed to pay an estimated amount of about Rs 1,752 crore towards the one-time fee.

MTS India's, another major CDMA player, spokesperson also declined to comment on this saying it is not concerned by what other operators do.