M A I N   N E W S

DoT may cancel licences of Idea, Spice in 5 circles
Penalty for failing to roll out services in stipulated time;
TRAI gives go-ahead

The Punjab factor TRAI has recommended the cancellation of licences of Idea in Punjab and Karnataka circles. Spice may bear the brunt in Maharashtra, Haryana and Andhra Pradesh. The DoT is also believed to have accepted the recommendations of Additional Solicitor General Amarjit Singh Chandhiok to impose a Rs 300-crore fine on Idea Cellular for holding more than 10 per cent stake in two mobile firms in six telecom circles, including Punjab, in violation of norms

New Delhi, April 10
The Telecom Ministry is likely to cancel the licences of leading mobile operator Idea Cellular and Spice in five states for failing to roll out services within the stipulated time.

Telecom regulator TRAI has recommended to the Department of Telecom (DoT) to cancel the licences of Idea in Karnataka and Punjab circles and that of Spice in Maharashtra, Haryana and Andhra Pradesh.

According a DoT note, "As per TRAI’s recommendation, these licences are in violation of terms and conditions pertaining to roll-out obligations,".

However, it said since the Spectrum (radio waves) has not been allocated to Spice in Delhi, it did not violate the service roll-out norms for this circle.

In 2008, Idea bought Spice but has not yet received the approval from the DoT to go ahead with the merger.

However, as per the TRAI, since no explicit approval has been received from the DoT till date for the merger of the licences of the two companies for six service areas -- in which they were competitors -- it is obligatory for both of them to individually comply with the licensing rules.

However, Aditya Birla group firm Idea maintains that it has not breached the licence agreement. Meanwhile, the DoT is believed to have accepted the recommendations of Additional Solicitor General Amarjit Singh Chandhiok to impose a Rs 300-crore penalty on Idea Cellular for holding more than 10 per cent stake in two mobile companies in the six telecom circles, in violation of existing norms. They are -- Karnataka, Punjab, Maharashtra, Haryana, Andhra Pradesh and Delhi. — PTI