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DoT slaps 8 termination notices on telecom firms 
Girja Shankar Kaura /TNS

New Delhi, April 11
It could soon be the end of the road for some of the start-up telecom companies, which failed to meet the initial roll-out obligations after getting licences for starting the services on first-come-first-served basis in 2008.

The government has decided to dispatch 17 notices to various telecom firms. While eight termination notices have already been sent, the DoT is in the process of dispatching the remaining nine notices as well. "In all, 17 notices would be issued for delay in rolling out services. Eight have already been sent," DoT Secretary R Chandrasekhar said here. Operators have been given 60 days to respond as to why their licences should not be terminated for their failure to roll out services as per licence conditions.

As per rules, operators are required to roll out services in 90 per cent service areas or circles in metros and 10 per cent in district headquarters within 12 months of the date of award of licences. However, most failed to roll out services even after two years of getting the licence. While Chandrasekhar did not name any operators to whom the termination notices have been issued or would be issued, reports have said that till now Sistema Shyam TeleServices, Aircel and Etisalat DB, Loop Telecom and Videocon have been sent notices for missing the deadline.

Former Telecom Minister A Raja and Shahid Balwa, director of Etisalat DB are already behind bars for “irregularities” in issuing telecom licences in 2008. Earlier, TRAI had said that six mobile phone companies had missed several deadlines for launching commercial services and rather than imposing penalties, their licences should be cancelled.

“This would vacate enormous amount of Spectrum and this can be given to companies that are serious about meeting the schedule,” it said.

The Comptroller and Auditor General (CAG) had also slammed the Telecom Ministry for not recovering Rs 679 crore as penalty or liquidated damages from six new operators for missing the network deadlines. Earlier, 119 notices were issued and the government collected over Rs 300 crore in penalties.

The DoT had started issuing notices after the TRAI asked it to take action against firms, which failed to honour various terms and conditions. The TRAI had pointed out that a total of 69 licence holders had violated norms. The DoT, in the second week of March, had issued notice for licence cancellation to Etisalat DB and Idea Cellular. While Etisalat DB was sent notice for cancellation of licence in Mumbai and Delhi circle, Idea Cellular got it for the Punjab circle.

However, companies have denied violating the license terms. Refuting the regulator’s arguments, Sistema Shyam, in which the Russian government now holds a 74 per cent stake, said: “Amongst the new telecom operators, Sistema Shyam Teleservices (SSTL) was the first company to launch its services.” “The company has complied with all its terms in all 22 telecom circles and has already secured over seven million voice subscribers and over 3,00,000 data customers,” it said in a statement after receiving the notice.

Norway’s Telenor, which holds a controlling stake in Unitech Wireless and offers services under the Uninor brand, had earlier warned that any move to cancel licences could impact foreign investment into India.

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