BT wants to surrender NLD, ILD licences

DoT is likely to approve the company’s request.

BT, the global telecommunications service provider, has approached the Department of Telecommunications (DoT) for surrendering its licence to offer international long distance (ILD) and national long distance (NLD) services in India.

DoT is likely to approve the company’s request, sources in the know said.

BT India Private Ltd’s decision to surrender its NLD/ILD licences came after it acquired i2i Enterprise Private Ltd — a company that provides both NLD and ILD services. BT had secured the licences in 2007.

“Due to the duplication of licences, BT Telecom India did not start services under the NLD and ILD licences and therefore, the company has decided to surrender the same,” BT had said in its application in March 2008.

In an internal note, DoT said the performance bank guarantee of Rs 2.5 crore each for the licences will be forfeited. However, the Financial Bank Guarantee (FBG) of Rs 20 crore each for the licences will be released, after ensuring clearance of all dues.

When contacted, company officials maintained the approval is likely to come in a day or two.

The development comes at a time when several new telecom operators, who were given licences and 2G spectrum in 2008 at 2001 prices, have approached the government for an exit route as they failed to start services during the stipulated period and are facing huge penalties.

The government is yet to consider such requests of several new telecom companies, who had paid Rs 1,651 crore in January 2008 to procure 2G licences along with 4.4 Mhz spectrum to offer mobile services. According to the terms and conditions of the licences, there is no provision for surrendering licence and in case the companies decide to do so, they would have to forfeit the licence fee of Rs 1,651 crore.