CAG seeks details on 3G intra-circle roaming pacts

NEW DELHI: The national auditor has turned its attention towards the 3G and BWA spectrum auctions conducted three years ago. Having accused the government of allowing private telecom operators to fail the 2G spectrum auctions, it has now sought details not only on the spectrum auctions but also on the 3G intra-circle roaming agreements between the private telecom operators.

The Comptroller and Auditor General (CAG) wants to ascertain whether the operators had deducted the 3G ICR from the total revenue while computing the total adjusted gross revenue, on which the operators pay a spectrum charge besides a licence fee, a communication between the auditor and the telecom department shows. A copy of the letter, reviewed by ET, however, suggests the DoT is reluctant to share the details of the 3G ICR pacts with the auditor.

In a missive to the DoT on June 5, the CAG has sought details of the 3G intra-circle roaming pacts entered into between Airtel and Vodafone, Vodafone and Idea cellular, Idea cellularBSE 1.36 % and Airtel, and Tata and Aircel.

The 3G ICR is currently sub judice in the Supreme Court. While Bharti AirtelBSE 0.73 %, Vodafone and Idea Cellular contend that allowing their subscribers to use each other's network to access 3G services in the circles where one of the three doesn't possess the spectrum is permissible, the DoT, however, says the practice is illegal.

"As per the conditions of the licence agreement revenue share payable by the telecom service providers is arrived at after allowing certain deductions like access charge and roaming revenues actually passed on to other eligible telecom service providers from their gross revenue," the DG audit Post and Telecommunications, a unit of the CAG has said in his communication, "Hence to ensure that the deductions on account of roaming charges claimed by service providers is in order agreements between the service providers is required."