4th Cell Bids: Govt Slams Move To Scuttle Process

The government Thursday came down heavily on those behind the various public interest litigations being filed against the bidding process for the fourth cellular operators' berth, which has scuttled the entire licensing process.

An immediate fallout of the PILs is that the third round of financial bids for the fourth cellular operators berth slated to be opened today has been postponed owing to a stay order given by the Chennai High Court on Wednesday.

The department of telecom, in a strongly worded statement, said, "It appears that those who do not find it to their own interest are raising issues and trying to prevent induction of additional players in the cellular segment. All this is being done to discourage competition and protect existing players. The government is taking appropriate steps to remove these hurdles to see that the consumer ultimately benefits."

Meanwhile, in an action packed day, the Mumbai High Court dismissed the PIL filed by the VSNL employees union. The court had given a stay order on the entire bidding process after VSNL employees raised objections to the government's decision in not allowing the corporation to bid for the fourth operators' berth. The DoT, represented by the solicitor general, filed its response today justifying the decision taken by the government. Telecom major Bharti also intervened as an affected party, pleading that the court vacate the stay.

Earlier in the day, as per DoT's directives, all six bidders Bharti, Reliance, Escotel, Batata, Indmobile and Essar Hutchison submitted their third and final bids for the fourth cellular berth. "The bids were received today. They have been sealed and kept in safe custody and will be opened as soon as the legal position is clear," said DoT.

Sources also said that the government will file a reply at the Chennai High Court on Friday. The DoT has also sought legal opinion on whether the order binds the department from opening the financial bids. The government is also moving the Supreme Court in a bid to put a stop to all the PILs sprouting across the country against the fourth cellular bids and bring it all under the apex court.

Sources added that Shyamal Ghosh, chairman, telecom commission would be meeting the Attorney General tonight to discuss and seek expert opinion on the issue.

The private cellular operators bidding for the fourth operators' berth are hopeful of an early solution to the legal impasse. Commenting on the day's developments, Manoj Kohli, Escotel chief executive officer said, "The fourth round of bidding is a robust process with relatively no faults. Though the Indian players may have the patience, the PILs will have a negative impact on foreign investor confidence in the Indian market."

Two rounds of the three-stage bidding process have already been completed. Of the 17 circles which got bids, eight have already been bagged. While Bharti has bagged six for close to Rs 400 crore, Escotel and Essar Hutchison have bagged one each.