The Department of Telecommunications (DoT) has defended its decision to allow Reliance Jio Infocomm Limited (RJIL) to migrate to unified licencing regime by paying an entry fee of Rs 16.58 billion.

The department’s response has come in the wake of Comptroller and Auditor General (CAG) of India raising questions regarding DoT’s policy to allow internet service providers (ISPs) holding broadband spectrum to start offering voice telephony services by paying an entry fee of Rs 16.58 billion.  According to CAG, DoT’s move may have resulted in a loss to the exchequer.

The DoT has termed CAG’s view as untenable and based on hypothetical calculations. Further, it has also questioned CAG’s powers to raise issues regarding policy decisions which do not fall under the purview of auditing. According to the DoT, contention of CAG’s audit report, that the entry fee of Rs 16.58 billion discovered in 2001 should not be applicable in 2013, is incorrect. It is to be noted that the entry fee of unified access service licence included the cost of associated pan India start-up spectrum.

Earlier, in June 2010, RJIL had acquired Infotel Broadband Services Private Limited, soon after the latter won pan-India broadband spectrum. Infotel Broadband Services Private Limited was allocated an internet service providers (ISP) licence under which the player was not allowed to offer voice services.

Subsequently, in 2013, DoT came out with the new unified licencing regime policy under which players could offer all types of services by migrating to the new licencing regime. While companies holding unified access service licence were allowed to migrate to the new regime without paying any additional fee, ISP licences (with no spectrum holding) were asked to pay Rs 0.15 as entry fee. However, ISPs which held broadband spectrum had to pay Rs 16.58 billion as entry fee.