Tata Tele may be fined Rs 50 cr

Tata Teleservices (Maharashtra) Ltd faces a Rs 50-crore penalty for introducing its "push-to-talk" services without a Unified Access Service Licence.

The department of telecommunications (DoT) had earlier suggested that no penal action be taken against the company, as it felt that both Tata Teleservices (Maharashtra) and Tata Teleservices Ltd "had provided the services without any malafide intentions". The department was also in favour of further examining the matter.

Tata Teleservices had stopped the service in March 2005 after the DoT said the licence did not permit push-to-talk.

The DoT has now said as the company had introduced the services with the basic intention to avoid payment of licence fee and Access Deficit Charge.

This is because the company had said the service was being provided under the unified licence, for which it has only recently filed an application. The company's current licence was valid only in Maharashtra, the DoT said. (The company also holds a pan-India internet service provider's licence).

"It is thus proved beyond doubt that the (company's) intention was to avoid payment of licence fee and statutory payment like ADC.

The annual licence fee under their unified licence is 12 per cent of the aggregated gross revenue while the same is Re 1 per annum under the ISP licence," the DoT said.

"Malafide intentions are therefore clear. Risking of security aspects are the result of such violations," it added.

The government has also said since push-to-talk was permitted under unified licence, it would not consider termination of the company's ISP licence, but only impose a penalty of about Rs 50 crore.

The department had sent a letter stating its intentions to take action as per the terms of the licence, and also to impose a likely penalty of Rs 50 crore.

Executives from Tata Teleservices refused to comment saying the company had replied to the department's notice.

Trapped
DoT had earlier suggested that penal action should not be taken against the company as it had provided the service without any malafide intentions

The company had stopped the service in March 2005

The service is not permitted under the exisiting licence system

Department intended to take action as per the terms and conditions of the licence and also to impose a likely penalty of Rs 50 crores