TDSAT asks Uninor to pay 60% penalty; admits case against DoT

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today passed an interim order on Uninor’s appeal against a Department of Telecommunications (DoT) notice, asking it to pay a penalty due to delay in rollout obligations.

The interim order by TDSAT directed Uninor to pay 60 per cent of the penalty within two weeks from date, without prejudice to the rights and contentions of the parties and subject to any other or further orders.

TDSAT also said the company has raised some “arguable” questions. The company in its petition had said along with the spectrum, they also need a Standing Advisory Committee for Frequency Allocation (SACFA) clearance for all the sites in each district headquarter.

The company further said their rollout was delayed because of the delay in granting these clearances. In addition, the company also said the start-up spectrum in some circles and some new testing requirements have also come up, leading to the delay.

“According to the petitioner, they have in fact rolled out their network on or about December 2009 whereas due date would be June 2010, if the maximum delay is said to have been caused for SACFA clearance is taken to be 83 days. The petitioners, therefore, contend that in fact they have completed their roll out obligations for the first year i.e. in relation to 10 per cent of the total district headquarters, 157 days ahead of the schedule,” the order said.

In early December, DoT had sent notices to many telecom companies for not fulfilling the rollout obligations after receiving 2G spectrum. Uninor had paid Rs 13 crore as penalty for failing to rollout in four circles. The company had then said it had made this payment under protest and had appealed to TDSAT over the same. The company received notices for delay in 10 circles.

TDSAT in its order said the respondent should have been granted an opportunity of hearing to the petitioners. “Had such an opportunity been given, the petitioners could have shown that they were not responsible for any delay whatsoever and in fact the blame in respect thereof lies on the respondents,” the order said.

Uninor in its statement welcomed the order. “We appealed against the demand of liquidated damages and the fact that Uninor was not given an opportunity to make its case. TDSAT’s interim order acknowledges the merit of our arguments. We are a young operator, but with 16 million customers already, we demonstrate our serious and long-term intent,” the company said.