OTSC hearing adjourned to next week

The hearing in the one-time spectrum charge case has been adjourned until next week by the Supreme Court.

The Supreme Court (SC) had earlier already dismissed a petition by the telcos challenging the levy of one-time spectrum charges (OTSC) by the government.

The OTSC dues are based on DoT rules that require a telco holding beyond 6.2 MHz/circle between July 2008 and December 31, 2012, to pay a one-time market-linked price for the excess spectrum held. The telcos are required to pay the market price for airwave holdings beyond 4.4 MHz/circle between January 2013 till the expiry of their respective licences.

Airtel two quarters ago had made provisions of Rs 7,004 crore in its exceptional item, mostly on account of OTSC dues. Vi had recognised Rs 3890 crore in its exceptional items in the March end quarter towards providing for OTSC dues.

If the ruling is in favour of the telcos, then it can reduce their liability by more than 60% of the Rs 25,000 crore amount being demanded by the telecom department.
CT Bureau