December 2, 2015 1:21:14 am
Bharti Enterprises chairman Sunil Bharti Mittal on Tuesday called for discouraging profiteering in spectrum trading deals. Emphasising on the need to encourage spectrum trading, he asked government to consider charging a levy based on the auction price instead of the deal amount.
As per the trading guidelines, the seller needs to pay to the government licence fee and spectrum usage charge amounting to 13 per cent of the amount received. The buyer needs to pay a transactional charge of 1 per cent of the amount to the government.
“I have been a votary of free trading spectrum…but last week’s deal makes my case extremely weak,” Mittal said.
Last week, Videocon Telecommunications sold its spectrum in two circles of Uttar Pradesh (West) and Gujarat to Idea Cellular for Rs 3,310 crore.
Effectively, in a span of over two and half years, between the time that Videocon had bought the spectrum at around Rs 1,670 crore through the auction route, the telecom company has made a gain of over two times its initial cost.
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