New Delhi: Supreme Court’s ruling of cancelling the 2G licenses has come as a boon to the government as DoT has estimated to generate Rs 95,000 crores as revenue with new 2G auctions for 122 licences. However, after the recent ruling uncertainties over telecom policy may come to an end.

The government and TRAI have indicated towards faster resolution of telecom issue. To save its reputation among investors across the globe, the government is planning to do something for the companies whose licenses have been cancelled.  Telecom Minister Kapil Sibbal has said that “With the Supreme Court’s ruling we would be able to resolve the issues which are due for a long time. Investments will be increased and the government may come up with 4G services by year end.”

It seems that TRAI was also waiting for Supreme Court’s decision. Their officials have said that TRAI will come up with new rules in next two months. However, now it is clear that spectrum allocation will be done only through tender process. TRAI is on its way of finalizing a unified telecom license rule. Only those companies having this license will be allotted the spectrum. Prices of the License and spectrum will be different. In next few weeks, this decision will be taken in consultation with DoT. Similarly a process will be initiated to unify existing individual licenses of different companies into one.

As per the new rule, there will be fresh auction for 122 licences. Those companies whose licenses have been cancelled can get 540 MHtz spectrum. As per the estimation of DoT, for 1 mega hertz of spectrum companies need to pay a fee of Rs 175 crore. The government is expected to generate additional revenue of Rs 95,000 crores through the process.