Videocon asked to renew rollout security of 2 circles

Telecom tribunal exempted the operator from extending security for Mumbai circle

Telecom tribunal TDSAT has asked Videocon Telecommunications to renew its performance bank guarantees for Uttar Pradesh (East) and Madhya Pradesh circles for three months.

However, the telecom tribunal exempted the operator from extending the security for the Mumbai circle. Performance bank guarantee is paid by an operator to DoT at the time of allotment of spectrum. The DoT returns PBG on completion of roll-out obligation.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) said there was 'controversy' over the certificates of completing roll-out obligations in Uttar Pradesh (East) and Madhya Pradesh circle, so "it is necessary to hear the petition in detail".

" .. The petitioner (Videocon) is not bound to extend the PBGs for further period for Mumbai circle. However, pending final hearing, the petitioner will give an undertaking to the effect that if any amount becomes due to it, it will pay the same to the respondent," TDSAT said.

Videocon had submitted bank guarantees worth Rs 30 crore. It has secured Rs 5 crore for UP East and MP respectively and Rs 20 crore for Mumbai circle.

The company had approached the tribunal after DoT wrote a letter to it on January 3 asking to extend PBG by January 7 and failing to which guarantees would be invoked.

Requesting the tribunal to stay the DoT from taking any coercive step, Videocon contended that it had already filed a petition before TDSAT in October last year seeking release of PBG as it has completed roll-out obligations in the said three circles.

It further submitted that DoT has not filed reply of the petition.

The company has produced test certificates of 24 district out of 48 in UP East, 34 districts out of 68 of MP and 286 BTS in the Mumbai Circle.

However, DoT disputed the facts saying that Videocon has still not submitted digital map of its network. Moreover it also raised doubt on test certificates and contended that certificates issued in certain cases do  not fulfil the criteria as required and drawbacks have been pointed out.