COAI throws weight behind telcos facing licence cancellation

New telecom operators facing threat of cancellation of licences due to missing roll-out obligations today got support from GSM lobby COAI, which said that delays in starting services at times was unavoidable as they (operators) don't get all clearances in time.

"There are some issues which are not in the control of the telecom companies like SACFA clearance or delay in the spectrum allocation and they (operators) are not at fault if they miss network roll-out deadline.

"We just want that DoT must hear their responses and give them sufficient time so that they can get back to them. Cancellation of licenses without hearing their responses is very harsh," COAI Director General Rajan S Mathew told PTI.

The Department of Telecommunications (DoT) had issued notices to 119 telecom operators for not rolling out their network in circles last month.

In case show cause notices were issued for cancellation of licences, the operators would be given 60 days' time to respond to the notices before DoT takes the final decision.

"New telecom service providers are in talks with the DoT and are giving their response on the matter for not rolling out services yet," Mathew quipped.

As per the conditions of licence, the licensees are required to roll out the services in 90 per cent of the service area in metros and 10 per cent in district headquarters within 12 months (52 weeks) from the date of award of licences.

The DoT had served notices to 119 telecom licensees for suppressing information while applying for licences and then missing the timeline to roll-out services in respective circles.

The telecom ministry had levied Rs 218 crore liquidated damages on several new operators for missing roll-out schedule.

Earlier, during the day the Supreme Court decided to examine the alleged illegalities in allocation of 2G spectrum during the tenure of former Telecom Minister A Raja, asking the Centre and telecom companies to explain why the licences should not be cancelled.

The apex court also issued notices to 11 telecom companies -- Etisalat, Uninor, Loop Telecom, Videocon, S-Tel, Allianz Infra, Idea Cellular, Tata Tele Services, Sistema Shyam Teleservices, Dishnet wireless and Vodafone-Essar.

The bench asked all of them to respond within three weeks and posted the matter for hearing on February 1.