TDSAT asks SSTL, Videocon to pay 60% of penalty imposed by DoT

Telecom tribunal TDSAT today asked new operators Sistema Shyam TeleServices (SSTL) and Videocon Teleservices to pay 60 per cent of the penalty within two weeks, imposed on them by the Department of Telecommunications (DoT) for failing to meet their roll-out obligations.

TDSAT Chairman Justice S B Sinha asked SSTL, a joint venture between Sistema of Russia and Shyam Group of India, to pay Rs 6 crore, and Videocon to pay Rs 5.1 crore to the government.

The Telecom Disputes Settlement and Appellate Tribunal's (TDSAT) interim order came on two separate petitions filed by SSTL and Videocon challenging the demand notice issued by DoT seeking liquidated damages for not rolling out its services within the stipulated period of one year.

DoT, on January 19, issued notice to SSTL demanding liquidated damages for three circles within 15 days.

It has demanded Rs 7 crore for Kerala circle, Rs 1.85 crore for Orissa circle, Rs 1.15 crore for Kolkata circle.

Earlier in a similar case, TDSAT had directed Uninor to pay 60 per cent of the penalty amount demanded by the DoT for failing to roll out services in 18 circles.

Directing DoT to file reply within two weeks, TDSAT has listed the matter on February 10 for next hearing.

DoT had sent notices to several firms, which got new 2G licences bundled with start-up spectrum, but have not started offering services in various circles.

As per the conditions of the Unified Access Service Licence (UASL), the telcos are required to roll out their networks within a year from the date of allocation of spectrum.

According to the agreement, in case new licencees fail to roll out services within the stipulated period, DoT shall be entitled to recover liquidation damages.