DoT hardens stand on new telcos' network

The Department of Telecommunications (DoT) has asked all the new operators to expedite their network rollout process as stipulated in the licence guidelines or face action, as the three-year period for fulfilling obligatory conditions for the rollout is about to end next year.

DoT had issued licences in January 2008 and new players had to complete 10 per cent of the rollout network within a year and 50 per cent in three years.

“Though some of the new players, who were issued licences in 2008, have met the rollout requirements, we have recently conveyed to all the new operators to fulfil the rollout obligations in a fast-paced manner. After the expiry of the three-year-period in January next year, the operators might have to face action in the form of penalty,” the official said.

The companies that were issued licences in 2008 include real estate company Unitech, which offers mobile services under the Uninor brand, in partnership with Norway’s Telenor, Loop Mobile, Datacom, Swan Telecom (now Etisalat DB) and STel, among others.

“DoT will start sending notices to the players, who have not met the obligatory conditions, once the deadline is over and we have all the latest figures and data,” the official added.

When contacted over the issue of rollout obligations, Uninor said: “We have commercially rolled out in 13 circles that account for 75 per cent of India’s population. We have over 24,000 towers in place, 60 offices, over 280,000 points of sale and over 13.5 million subscribers. In all the remaining circles where we have spectrum, we have completed our rollout obligations.”

Echoing similar views, a senior official from Loop Mobile said the company had finished the pan-Indian network rollout and had commercially launched in circles such as Rajasthan, Madhya Pradesh, Kolkata, Kerala, and Karnataka.

“The licence deadline commands that we complete 10 per cent rollout within a year of receiving spectrum and we have to complete 50 per cent rollout in three years. The deadline will end in 2011. But the company is waiting for full clarity on regulatory directives in terms of spectrum sharing, which are pending with Trai and DoT, to go for a pan-Indian commercial rollout,” the Loop Mobile official said.

A Videocon official maintained the company planned to have a pan-Indian presence by early 2011, which will be well before the licence deadline.

Videocon has already launched commercial services in seven circles — Mumbai, Punjab, Haryana, Tamil Nadu, Kerala, Madhya Pradesh, Chhattisgarh and Gujarat.

According to figures by Trai, Videocon has 3.6 million mobile users by the end of August, while Loop Mobile has 2.9 million.

Etisalat DB could not be reached for comments.