KOLKATA: The telecom tribunal has struck down a Rs 3500-crore spectrum contiguity levy imposed by the telecom department (DoT) on Sistema Shyam Teleservices Ltd (SSTL), saying the same rules needed to be follow for all telcos. “We find it difficult to accept the ground advanced by DoT to deny the petitioner (read: SSTL) reconfiguration/rearrangement of its spectrum blocks. It must be allowed by DoT on exactly the same terms as (such) reconfiguration/rearrangement of spectrum blocks was allowed to Reliance Jio Infocomm,” the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) ruled Friday. The TDSAT noted that the government had relaxed the differential pricing norm in Reliance Jio Infocomm’s case and allowed it to convert its non-contiguous 800 MHz spectrum into contiguous airwaves in some circles. The tribunal, further, added “Reliance Jio was allowed to reconfigure/rearrange its spectrum blocks with RCom’s non-liberalised spectrum, there does not appear any reason why the petitioner (SSTL) should be treated differently”. The DoT can challenge the order in court, but officials in the department say they are still to study the order and haven’t taken any decision as yet. Reliance Jio had converted its originally non-contiguous 800 Mhz spectrum in UP-East, Bihar and J&K into contiguous airwaves last November and is learnt to be awaiting DoT approval to similarly convert such non-contiguous bandwidth in Orissa and Himachal Pradesh, although this was not independently confirmed by the company. The TDSAT order is likely to translate in sizeable cost savings for Anil Ambani-led Reliance Communications, which is taking over the Indian mobile telephony unit of Russia’s Sistema JSFC. It also paves the way for SSTL convert its non-contiguous 800 MHz spectrum in the run-up to the merger with RCom. More so, since such contiguous spectrum can be used for 4G LTE technology more effectively than these operators have at the moment. Sistema Shyam, the country’s sole pure-CDMA player, has had disagreements with DoT on differential pricing of contiguous and non-contiguous airwaves in the 800 MHz band. This was after DoT cited a clause in the March 2015 auction rules and asked SSTL to pay an additional sum (roughly $610 million or Rs 3500 crore) to reconfigure its non-contiguous airwaves into contiguous or `continuous’ spectrum. Contiguous spectrum in the 800 Mhz band is more efficient and essential for offering 4G services. The DoT had cited Clause 3.10 of the March 2015 auction rules that required Sistema Shyam, the sole buyer of 800 MHz spectrum in the March 2013 auction, to pay the differential between the March 2013 and March 2015 auction price on a pro-rata-basis to make its airwaves contiguous. Subsequently, Sistema Shyam approached TDSAT last year, urging it to direct DoT to make its spectrum holdings contiguous. Previous auctions had allowed rearrangement of frequencies with other operators without an additional charge.