2G: DoT may send licence termination letters to new players

Following Supreme Court order that cancelled 122 2G licences terming them as illegal, the Telecom Ministry is likely to send letters to new operators for termination of their licences.

This was discussed in the Department of Telecommunications' internal meeting to discuss the implications of the Supreme Court order and way forward in this regard.

The members discussed various issues including sending communication to licencees for termination of licence agreement, refund of licence fee in respect of 85 licences who were declared ineligible, and similarly for remaining 37 licences, a source close to the development said.

Further an internal committee of DoT discussed about the showcause notices for imposition of penalty on International Mobile Equipment Identity (IMEI) violation cases of all licencees.

The committee is also understood to have discussed whether liquidated damages for delay in compliance of second phase of roll-out obligations needs to be imposed or not.

The government in the first phase had collected over Rs 300 crore from new telecom operators as liquidating damages for failing to roll out networks within stipulated period.

The new operators have asked the government to secure their investments. Telenor of Norway, Sistema of Russia are the most aggressive players among the new operators and have set up infrastructure across the country.

Telenor, a majority shareholder in Uninor, claims to have invested over Rs 14,000 crore in Idnian operations while Sistem, a majority joint venture partner in Shyam-Sistems, has pumped in over USD 2.5 billion (about Rs 12,000 crore).

Both are likely to particiapte in the forthcoming auction of 2G spectrum to continue their operations and secure investments.

Telecom regulator Trai has already issued a consultattion paper in this regard seeking industry and other stakeholders' views before finalising recommendations.