Tata Teleservices, India's sixth-biggest mobile phone firm by users has decided to surrender the large share of its CDMA mobile airwaves. With this initiative, the entity aims to exhibit its protest against the Government's decision to impose a one-time fee on its frequencies, providing yet more evidence of the diminishing potential of a sector once hailed as a poster-child of liberalization.
The company has informed the government that, it will surrender all airwaves beyond the 2.5 MHz limit in 15 regions, with the exception of Delhi and Mumbai, where it will retain 3.75 MHz by paying the surcharge. In December, the Cabinet had approved a one-time fee on all airwaves held by incumbent operators and this payment is applicable on all airwaves held by mobile firms, except startup spectrum of 2.5 MHz. With this decision the industry may have to shell out about Rs 28,000 crore towards this charge.
