SC reserves verdicts on spectrum issues

How much companies must pay for continuing to operate after cancellation of their licences was discussed

On the conclusion of arguments, the Supreme Court on Monday reserved orders on three issues affecting telecom companies which lost their licences following its judgment last year, and bidders in the new auctions.

One of the questions argued on Monday at length before a bench headed by judge G S Singhvi was how much companies must pay for continuing to operate after cancellation of their licences for illegalities during the A Raja regime. Another issue related to circles where bidding was completed in October-November last year but the successful bidders cannot enter the market, as the old operators have not vacated the spectrum.

Another question is the status of the 900 MHz band of spectrum, not considered by the court when it delivered the judgment on February 2 last year, quashing 122 licences.

The judges noted on Monday that their judgment dealt with only the 800 and 1800 bands, not the 900 one. They clarified the telecom companies could move other courts regarding allotment of the 900 band, while the SC alone would deal with the 800 and 1800 bands. The court had imposed a ban in August last year on other courts hearing petitions regarding spectrum allotment. The 900 MHz band is supposed to be the most efficient one.

Several telecom companies presented a spectrum of woes encountered by them in various circles after the last auction. The next auction is scheduled early next month and the process has started. They wanted clarification on their status from the court.

The order, expected in two days, will throw light on these issues.

Prashant Bhushan, counsel for the Centre for Public Interest Litigation, argued most of the companies were not interested in bidding, even with the low floor prices set by the department of telecommunications. He suggested only those who gave an undertaking to operate should be allowed to continue.

Responding to the order, a Sistema Shyam TeleServices Ltd spokesperson said: “Sistema Shyam TeleServices Ltd is awaiting the formal order by the Supreme Court on the extension of the telecom licences till the conclusion of the fresh auction process for grant of licences and allocation of spectrum. The immediate priority for the company is to carefully study the recently released notice inviting application and accordingly come up with a view on the spectrum auctions, starting March 11.”