Telcos that didn't participate in fresh 2G auction will not operate: SC

The Supreme Court on Friday ruled that the telecom firms whose licences were cancelled and which did not participate in fresh auction for 2G spectrum will cease to operate forthwith. Sistema and Tata Tele were among those who did not bid in the auction.

"The telecom companies which have been unsuccessful in the bidding and those after the cancellation of the licences did not participate in the fresh auction are directed to cease from continuing from operation forthwith and the successful bidders will immediately start in their respective circles," the court said.

The Supreme Court also rejected curative petitions filed by Videocon, Russian firm Siestema, Tata Telecommunications and Idea against the decision of the Supreme Court cancelling all 122 2G licenses. Getty Images[/caption]

The court also ruled that the telecom firms, which continued operation after the licences were cancelled, will have to pay fee as per the reserved price fixed for fresh auction which was held in November 2012.

The apex court by its interim orders had extended the deadline for them to continue with the operation.

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The court said the entire 2G spectrum was freed up when licences were cancelled and it must be auctioned.

The Supreme Court clarified that its February 2, 2012 order cancelling licences will not be applicable on telecom firms holding 900 MHZ band spectrum.

The bench also directed to immediately put on fresh auction entire 2G spectrum for the licences cancelled by it.