DoT To Fine Bharti Airtel For Overstepping Spectrum

According to a report by a leading news daily, the Comptroller and Auditor General of India has informed the Department of Telecom (DoT) to levy a fine of Rs 725 crore on Bharti Airtel. This followed the company's use of 3G airwaves in circles where it had not bought any spectrum. This includes the circles of Kerala, Maharashtra, UP (East), Kolkata, Madhya Pradesh, Gujarat and Haryana.

The fine of Rs 725 crore slapped on the company is divided into two segments. One part would be an amount of Rs 521.33 crore as a proportionate amount of the auction price for the airwaves in the respective circles.

In addition, the CAG has also directed the telecom operator to cough out an amount of Rs  204.35 crore as spectrum usage fee for the period it has used the spectrum in the seven service areas and earned revenues from this. The spectrum usage charge is a cascading fee paid by telecom operators annually and varies between 3%-8% depending upon the amount of spectrum used.

The authority had earlier rapped the DoT for failing to revoke the telecom permits of the operator in these seven circles.

Following this news Bharti Airtel is trading at Rs 326 down by 2.60%.