Panel for refunding fee paid by telcos in 2008: Sources

An ministerial panel recommended that the fees paid in 2008 by those telecom operators set to lose their permits after a Supreme Court order be adjusted against the price in an upcoming auction or be refunded, senior government officials said.

However, this would be possible only for those companies against whom there is no "criminal liability", officials who declined to be named said.

The Supreme Court has ordered cancellation of all the permits granted in a tainted 2008 sale and asked the government to redistribute airwaves through an open auction. It would be the last chance for eight carriers, including Idea Cellular Ltd and Telenor's India unit, to win back their lost permits.

Sources say companies will have to pay for spectrum beyond 4.4 MHz in case of GSM and beyond 2.5 MHz in case of CDMA. Basically, companies will be given a staggered payment options to pay a market-determined price for extra spectrum that they hold and they will only have to pay this on a pro rata-basis, which is going to be computed from the date of the cabinet decision. The Cabinet is likely to meet on the October 16, and take a decision in this matter.

If companies choose to participate in the auction then this amounts to Rs 1,650 crore computed on a pan India-basis and it will be adjusted with respect to the payment that the firms will have to make for spectrum after the auction. In case, companies do not wish to participate in the auction and don't have any case pending, then the entire amount is going to be refunded to these companies.

The government is also likely to give an option to the existing telecom companies to surrender license beyond 4.4 MHz and 2.5 MHz in case of GSM and CDMA respectively, in case they do not wish to pay a market-determined price.