The Department of Telecom (DoT) has sought about Rs 5,600 crore from Reliance Communications (RCom) for liberalising 800 MHz spectrum in 16 circles.
Also, the operator has been asked to submit a bank guarantee of about Rs 1,569 crore for one time spectrum charge (OTSC), sources said. The sources added that DoT had issued a notice on December 22 and asked RCom to pay within a month.
RCom had applied for liberalising its 800 MHz spectrum in 20 circles a few months back. The company, however is yet to receive any notice for the remaining four circles, where market determined price is not available.
The four circles are Kerala, Karnataka, Rajasthan and Tamil Nadu.
The DoT had already sought sectoral regulator Trai's views on liberalisation of spectrum in circles where market determined price is not available.
When contacted a Reliance Communications' spokesperson declined to comment. OTSC is the charge which the operators had been asked to pay for additional spectrum by DoT through its orders in December 2012 and March 2013. The operators, however challenged the order and the issue is now sub-judice.
As per the sources, RCom has been asked to pay OTSC from January 1, 2013 till the effective date of liberalisation of administratively alloted spectrum.
As the OTSC issue is pending before the court, the DoT has asked RCom to submit a bank guarantee equal to the charge.
To liberalise administratively alloted spectrum, telecom companies need to pay market determined price for the remaining period of the licence. Reliance Group Chairman Anil Ambani had announced RCom was tying up trading and sharing of spectrum with Mukesh Ambani-led Reliance Jio including for the much-awaited 4G services.
Addressing the annual general meeting, Anil Ambani had said both the companies were at "an advanced stage of discussion" for finalising a nationwide spectrum trading and sharing arrangement.
In order to share or trade spectrum, telecom operators need to liberalise their spectrum.
The Government had issued guidelines to liberalise the administratively alloted 2G spectrum, allowing operators to offer latest mobile services, including 4G, using the same radiowaves.
The spectrum will be liberalised for the remaining period of the licence terms held by the telecom operator. The telecom operator will have to pay auction determined price prorated for the balance validity period, as per the guidelines.