DO. O.

10709/FS/2007

Finance Secretary Department of Economic Affairs Ministry of Finance Government of India New Delhi Tel: 23092611, 23092555, Fax: 230940 Dr. D. SUBBARAO November 22, 2007

Shri D.S. Mathur, Secretary Department of Telecommunications Ministry of Communications and Information Technology, Sanchar Bhavan, New Delhi

1.

During the presentation on the Spectrum Policy to the

Cabinet Secretary on 20 November, 2007, you had mentioned among other things, that (i) three CDMA operators were given crossover license for GSM operations (ii) the fee for this license was determined at Rs.1600 crore (for all India operations with prorata determination for less than all India operations), and (iii) that one of the licensee has already paid the license fee. 2. That purpose of this letter is to confirm if proper procedure

has been followed with regard to financial diligence. In particular, it is not clear now the rate of Rs.1600 crore, determined as far back as in 2001, has been applied for a license given in 2007 without any indexation, let alone current valuation. Moreover, in view of the financial implications, the Ministry of Finance should have been consulted in the matter before you had finalized the decision. 3. I request you to kindly review the matter and revert to us as

early as possible with responses to the above issues. Meanwhile,

all further action to implement the above licenses may please be stayed. Will you also kindly send us copies of the letters of permission given and the date?

Yours sincerely,

Sd/(D. Subbarao)

Copy to:

(i)

Shri K.M. Chandrasekhar, Cabinet Secretary,

Rashtrapati Bhavan, New Delhi (ii) Shri Rohit Kansal, Private Secretary to Finance

Minister, Ministry of Finance, North Block, New Delhi.