SC admits telcos' plea against TDSAT order

However, there is no interim relief to the telcos who need to take part in the auction on Monday

The Supreme Court, on Sunday, admitted the petitions filed by the country's top telcos -- Bharti Airtel, Vodafone India and Idea Cellular, against the order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that has dismissed the telcos' petitions seeking extension of licences in 900 MHz band.

While the apex court has said that it would expedite the matter, it did not give any interim relief to the telcos, and has said that the Government should conduct the auction as scheduled on 3 February.

If the SC latter decides to permit extension of licences of the telecom companies whose licences are due for renewal in November this year and next year (for Idea Cellular), in Delhi, Mumbai and Kolkata telecom zones, the Government will have to follow the SC orders.

So, the companies will have to participate in the auction starting Monday.

Earlier, the TDSAT has on Friday dismissed the petitions for extension of licences due for renewal in November in the 900 MHz spectrum band of Bharti Airtel, Vodafone and Idea Cellular, saying: “The petitioners have failed to establish their right for extension in terms of the relevant provisions in their licences.”

TDSAT had also dismissed a similar petition from Loop Mobile, which has decided not to give bids for the auction. With the TDSAT order, the fate for its three million subscribers in Mumbai is uncertain.

Bharti Airtel has licences under question in Delhi and Kolkata and Vodafone in Delhi, Mumbai and Kolkata. Loop only has operations in Mumbai. Idea had moved TDSAT against the principle adopted by the department of telecommunications (DoT) to not extend licences automatically where these are due to expire next year.

With the auction on schedule, Bharti and Vodafone will bid aggressively to retain their existing holdings in the 900 MHz band. With Reliance Jio entering the scene, the bidding will be fierce in Delhi and Mumbai, while the Kolkata circle is also expected to see high interest.

Vodafone had earlier told DoT it would pay Rs 3,000 crore and a three per cent spectrum usage charge on annual adjusted gross revenue if the government agreed to extend its licences by 10 years. The original licence terms said if a company sought extension in the 19th year of operations, the Government may extend this by 10 more years.