DoT may seek Trai's views on exit policy for telcos

In a development that could help vacate huge amount of 2G spectrum, the government may allow operators who have failed to roll out services to surrender their licences.

"We will ask telecom regulator Trai to initiate consultation process and seek industry and public views on the subject," Telecom Minister Kapil Sibal told reporters here.

"We are considering it and it may take some time," he added. It will be a part of the New Telecom Policy 2011 being framed by the Department of Telecommunications (DoT).

There are several new operators who have not rolled out their services, including Videocon and Etisalat DB.

On the controversial issue of cancellation of 74 licences as recommended by telecom regulator Trai, Sibal said, "We have received their recommendations and we are reviewing it."

Trai has stood by its decision recommending cancellation of 74 licences for missing roll-out obligations, as against 12 as per DoT.

The Telecom Regulatory Authority of India (Trai) has also obtained legal opinion on this.

The DoT is of the view that going by licence terms and conditions, the licencees are liable to pay liquidated damages if services are not rolled out within 52 weeks.

As per the rules, operators have to cover 10% of the district head quarters within first year of the allotment of spectrum, or radio waves.

And on the expiry of another 52 weeks, after claiming liquidated damages, the licences can be cancelled in case the services are not rolled out as per licence conditions.

Trai said, however, that licences should be cancelled also in cases where operators might have technically set up networks, but have never notified their tariffs, submitted their subscriber numbers or paid licence fee to government.

Last year, it had asked DoT to cancel 43 licences outright as they were given spectrum but did not roll out network within 52-weeks.

Rest of the 31 licences in the regulator's list showed either negligible or technically improper network rollouts.