News Delays And Dilution Cost Government Rs 50000 Crs Date 11 March(Business Line)

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News Delays And Dilution Cost Government Rs 50000 Crs Date 11 March(Business Line)

  1. 1. News: Delays and dilution cost government Rs 50000 crs Source: Business Line Date: 11/03/09 Name: Amit Sethi
  2. 2. <ul><li>According to news, delays and wrong decision by Government by DoT (Department of Telecom) have cost India almost Rs 50000 cr. </li></ul><ul><li>The delay in 3G and WiMax( Worldwide Interoperability of Microwave Access) spectrum has cost government around Rs 30000 crs. This is because of reason that DoT took more than two years to firm up the policy. </li></ul>
  3. 3. <ul><li>In addition, according to the DoT itself, the Government would have earned another Rs 5,000 crore had the DoT implemented its proposals to raise spectrum charges. </li></ul><ul><li>In November 2008, the DoT had decided to impose a one-time fee on all telecom companies that held radio frequencies beyond 6.2 Mhz. However, the decision was not implemented. </li></ul>
  4. 4. <ul><li>In the same month, the DoT declared that spectrum usage charges for all existing telecom companies would be increased by 2 per cent across the board. It had said that this would translate to an income of Rs 1,000 crore to the Centre. The new charge was to be effective from January 1, but it has not been implemented till now. </li></ul>
  5. 5. <ul><li>The DoT could have earned another Rs 500 crore if it had gone ahead with its decision to impose penalty on operators failing to meet the roll-out obligations. Instead of penalising the operators, the DoT diluted the roll-out norms. </li></ul><ul><li>Add to this, the revenue the Government would have got if it had started issuing licences to Mobile Virtual Network Operators and got the new mobile players to start paying revenue share by launching the service; the country’s economy would have been stronger. </li></ul>
  6. 6. <ul><li>So, in this article it shows the negligence of the rules and regulations which are made by Dot. Due to poor control and implementation government is losing huge amount of Money </li></ul>

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