Aircel withdraws from dual spectrum case

Mobile operator Maxis (Aircel) moved to withdraw from the ongoing litigation between several GSM mobile operators and the Department of Telecom (DoT)at the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Five of the country's private GSM mobile operators, barring Reliance Telecom, had on October 23 moved the TDSAT challenging a DoT decision to allow dual technology (GSM and CDMA) use on mobile networks.

Filed under the aegis of the Cellular Operators' Association of India (COAI), the petition said the decision violates the present telecom policy. The next hearing in the case is to be held on November 12.

"We put in an application on Thursday at the tribunal requesting to withdraw from the case," said Rohit Chandra, executive director, Aircel. He, however, refused to comment on why the company had withdrawn.

Another litigant "" Spice Communications "" is also contemplating its options. BK Modi, chairman, Mcorp Global, said: "I am watching the situation and will take a decision in the best interests of the industry. I want an amicable solution to this situation," he said.

The withdrawal leaves the GSM mobile industry split in the middle with three companies "" Bharti, Vodafone and Idea Cellular "" remaining in the case.

When contacted, a promoter of one of the three companies said the legal challenge will continue regardless of the withdrawals. "It does not impact the case. We will continue to fight this one out as the DoT decision is wrong," he said.

The reason for Aircel (part of Maxis Communications Berhad, Malaysia) to withdraw is that it is waiting for spectrum allocation in 13 circles. The company operates services in nine circles.

Similarly, Spice, which operates in two circles, and has applied for a nationwide licence, also stands to get spectrum ahead of others, once DoT finalises the spectrum allocation norms. "Fighting the DoT in court could jeopardise the chances of getting spectrum," sources said.