DoT gets 2 weeks to reply on Aircel for LD refund

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today sought response from the Department of Telecommunications (DoT) over a plea by Aircel and its group subsidiary Dishnet Wireless challenging the penalty demand made by the department after they failed to roll out their services on time.

The TDSAT's bench headed by Justice S B Sinha directed DoT to file their reply within two weeks and posted the matter for further hearing on March 22, 2011.

The tribunal's directions came over a batch of petitions filed by Aircel and Dishnet Wireless seeking refund of Liquidated Damages (LD) with interest.

Aircel and Dishnet Wireless are the new operators that were allotted 2G spectrum or radio waves by former telecom minister A Raja.

DoT had issued notices to Aircel and Dishnet Wireless demanding crores of rupees in penalty for failing to meet roll out obligations for seven circles each.

Both Aircel, a joint venture between Maxis Communications of Malaysia and Apollo Hospital Enterprise of India, and its subsidiary Dishnet Wireless have paid LD charges demanded by DoT under protest.

As per the Unified Access Service Licence (UASL) conditions, telcos are required to roll-out their networks within one year from the date of allocation of spectrum.

According to the agreement, in case, new licencees fail to roll out services within the stipulated period, DoT is entitled to recover LD charges.

Earlier in a similar case, TDSAT in its interim order, had directed Uninor and other telecom operators to pay 60% of the penalty demanded by DoT for failing to meet their roll-out target.

DoT had sent notices to several firms, which had got new 2G licences bundled with start up spectrum, but were still not offering services.