In a climbdown of sorts, the Department of Telecommunications (DoT) approached the Supreme Court Monday with a plea to extend the timeline for payment of adjusted gross revenues (AGR) by telecom operators. The latest plea moved by the DoT is seen as a shift of stance by many experts as it was on a application moved by the ministry that the apex court had upheld government’s definition of AGR. Monday’s plea seeking extension of time to a maximum of 20 years, and freezing on interest, penalties, and interest on penalties on past AGR dues, saw the Telecom Department make passionate pleadings as to how immediate payout by the companies would be detrimental for customers as well as overall market conditions. “It is found that telecom service providers who are required to make the payments are catering to the services of the crores of consumers throughout the country. The applicant is conscious of the fact that any immediate adverse impact on the functioning of the telecom service providers would not only have an adverse impact on the overall economy of the nation, but would also seriously harm the interest of the consumers throughout the country,” the Department said in its plea tothe SC. The Indian Express has seen a copy of the plea. The DoT, further in its plea, played out some of the scenarios for the court if no relief is given to the telcos. One of the first reasons, the Telecom Department said, is “capacity limitation” of mobile number portability process, which may lead to delay in shifting of operations from non-operational to operational telecom service provider. “TSPs (telecom service providers) porting in customers from telecom service providers not able to provide services will also need additional access (and backhaul) spectrum to maintain Quality of Service. Access spectrum is acquired through auction,” the DoT said, without naming which service provider could be forced to shut shop in the absence of relief by the SC. Apart from that, the Department also mentioned the possibility of adverse consequences for consumers if one of the competitors goes out of the market, and the loss of tax and non-tax revenues accrued to the government on account of license fee, spectrum usage charge, as well as Goods and Services Tax (GST). In the eventuality of one service provider undergoing corporate insolvency resolution process (CIRP), the DoT further explained, the spectrum which is considered a property of the TSP, will not be free for re-auction until the CIRP is complete. Apart from that, the closure of one TSP, the DoT said, would lead to major loss of direct and indirect employment, impact foreign direct investment, and hamper digital connectivity in the country. “The applicant states and submits that keeping in mind the aforesaid most possible and perhaps inevitable scenario in mind and in larger interest economic consequences on the nation and with a view to ensure that the order of this court is complied with in letter and spirit, the central government has taken a decision to seek approval of this court to a formula arrived at for recovery of the past dues from the telecom service providers,” the petition by DoT further read.
