TRAI has recommended fixation of uniform licence fees at 6% of Adjusted Gross Revenue (AGR) over a period of time, compared to 6%-10% now, depending upon the circles
New Delhi: The Telecom Regulatory Authority of India (TRAI) today dismissed GSM operators' charges that its recommendation to revise second generation (2G) spectrum prices will hit them hard and said they (telcos) were looking at the issue from a narrow perspective, reports PTI.
"Telecom firms should not look at only payout charges. This is just one element of the recommendations. There are other elements which will result in huge savings for the operators," TRAI chairman JS Sarma told reporters.
TRAI has recommended fixation of uniform licence fees at 6% of Adjusted Gross Revenue (AGR) over a period of time, compared to 6%-10% now, depending upon the circles, he said, adding that, "We have also recommended rationalisation of annual spectrum charges."
Sarma's comments came after incumbent GSM operators like Bharti, Vodafone and Idea Cellular and new service providers like Tata Docomo and Reliance Communications attacked TRAI for coming out with "irrational and discriminatory" recommendations on spectrum prices.
In fact, both factions-new and old GSM service providers-accused TRAI of making recommendations that benefited the other.
The new operators termed TRAI's recommendation as a complete sell-out to old GSM players, saying the extra spectrum hoarded by old operators would be legalised at a fraction of the actual cost.
They said that the operators should be asked to return the extra airwaves or else there should be a recurring cost and not a one-time entry fee, as proposed by TRAI.
In contrast, Vodafone Essar said TRAI's new set of recommendations are flawed, illogical and discriminatory against the operators that were the first to invest deeply to build the sector.
Similarly, Bharti also said that, "The recommendations by TRAI go against the stated principle of the government to offer affordability, fairness and a level playing field. There seem to be huge inconsistency in terms of the differences of prices in various circles, which defies logic."
TRAI said that taking all elements of its recommendations in totality, the operators would actually save money over the licence period.
Besides lowering licence fees and rationalisation of spectrum charges, TRAI is also in favour of lowering operators' contribution to the Universal Service Obligation (USO) fund, a levy which is used to subsidise operators to offer services in rural areas and villages.
Mr Sarma urged the operators to look at all elements of its recommendations collectively and not selectively, on the basis of spectrum prices alone.
Company’s Jaguar Land Rover unit, which the company bought from Ford Motor in 2008 is doing particularly well
Tata Motors, the country's largest truck and bus maker, on Friday reported a consolidated net profit of Rs2,420 crore for the third quarter ended 31 December 2010, from Rs650 crore in the corresponding period a year ago, on robust sales at home and improving demand at its Jaguar and Land Rover unit.
Standalone net profit increased 2.46% at Rs410 crore in the period compared to Rs400.14 crore in the previous corresponding period, the company said in a statement.
Consolidated revenue rose 22% to Rs31,685 crore from the year-ago period. Net sales during the October-December quarter stood at Rs11,458.95 crore compared to Rs8,923.99 crore in the corresponding period of the previous financial year.
During the period under review, consumption of raw materials and components cost stood at Rs 6,498.97 crore. (Compared to Rs 4,975.29 crore in the previous period.) Vehicle sales got better in the quarter at 1,94,085 units compared to 1,65,413 units in the year-ago period.
The company, whose products include utility vehicles, cars and the ultra-cheap Nano, is seeing a surge in demand within the country amid rapid economic growth. The Jaguar Land Rover business also reported profit after tax of Rs1,958 crore, Tata Motors said.
Tata Motors shares closed the week at Rs 1,144.65 on the Bombay Stock Exchange (BSE), up 3.79% from the previous close compared with the Sensex gain of 1.5%.
Bombay Dyeing net profit stood at Rs2.36 crore in the December 2009 quarter
Bombay Dyeing & Manufacturing Company has posted a net profit of Rs67 lakh during the third quarter ended 31 December 2010.
The net profit stood at Rs2.36 crore in the same period last fiscal, the company said in a filing to the Bombay Stock Exchange (BSE).
Net sales of the company rose to Rs429.51 crore during the third quarter under review compared with Rs402.75 crore during the same period last fiscal.
On Friday, Bombay Dyeing ended 4.53% down at Rs297.40 on the BSE, while the benchmark Sensex ended 1.52% up at 17,728.61.