Presidential reference for spectrum fee: What does it mean?

This was the really tough decision that had to be taken and the excuse of a presidential reference and opinion is completely surprising. There was no reason to link this decision to the presidential reference. It only shows lack of clarity on behalf of the ministers.

What has really happened so far is that as far as the licenses that stand cancelled in 2008 January, they will now have to participate in auction for which all the building blocks in terms of the decision have been taken by the EGoM. The cabinet will definitely stamp on it.

We know the reserve price will be somewhere between Rs 14000 crore to Rs 15000 crore possibly at the higher end. They made it much more easier for companies to participate by allowing mortgage of spectrum, also allowing a installment linked payment plan. But the big question really that will come up legally is that the entire intent was to bring in a level playing field between old and new operators which is something that Kapil Sibal has himself spoken about.

 The government seems to have decided to take the easier way out to try and impose a auction on licenses which are already dead in the water and possibly just look at whatever revenue that they can get. The finance ministry has this hope of getting Rs 45000 crore in this fiscal.