DoT to issue notices to RCom, TTSL for missing rollouts

After penalising new telecom operators for missing out roll-out obligations, the Telecom Ministry is likely to turn to dual technology players and may issue notices to Reliance Communications (RCom) and Tata Teleservices (TTSL) for similar violations.

The draft notices for imposition of liquidated damages (LD) for 10 licences each of RCom and Tatas have been prepared and are awaiting approval of the competent authority, said sources in the know.

RCom and TTSL offer both CDMA and GSM based mobile services. Both received dual technology licence in 2007-08 under the regime of former Telecom Minister A Raja, who has been arrested facing charges of irregularities in distributing 2G licences.

Till now, eight show cause notices for termination of licences due to violation of roll-out obligations have been issued and seven more cases are in the process of approval.

Recently, the government issued licence termination notices to three telecom operators -- Aircel, DB Etisalat and Sistema Shyam Teleservices (SSTL) for delays in rollout of services in eight circles.

Most of the new players who received 2G licences in 2008 have not met roll-out obligations. Some of them are under the scanner of various investigative agencies, including CBI and Parliamentary panels.

In all, 17 notices have been issued for the delays.

The operators have been given 60 days to respond as to why their licences should not be terminated for failure to roll out networks as per the licence conditions.

Earlier, 119 notices were issued and the government has collected over Rs 300 crore in penalties.

As per the rules, the licensees were required to offer services in 90% of their service areas in metros and 10% in district headquarters within 12 months from the date of award of licence.