2G: DoT may send licence termination letters to new players

New Delhi:Following the Supreme Court orderthat cancelled 122 2G licences, terming them illegal, thetelecom ministry is likely to send letters to new operatorsfor termination of their licences.

This was discussed in the Department of Telecom'sinternal meeting that evaluated the implications of the SupremeCourt order, discussed the way forward.

[caption id="attachment_209908" align="alignleft" width="380" caption="The committee also discussedwhether liquidated damages for delay in compliance of secondphase of roll-out obligations needs to be imposed or not.Reuters"][/caption]

The members discussed various issues, including sendingcommunication to licencees for termination of licenceagreement, refund of licence fee in respect of 85 licences thatwere declared ineligible, and similarly for remaining 37licences, a source informed of the development said.

Further, an internal committee of DoT discussed showcause notices for imposition of penalty on InternationalMobile Equipment Identity (IMEI) violation cases of alllicencees.

The committee is also understood to have discussedwhether liquidated damages for delay in compliance of secondphase of roll-out obligations needs to be imposed or not.

The Government in the first phase had collected over Rs300 crore from new telecom operators as liquidating damagesfor failing to roll-out networks within the stipulated period.The new operators have asked the government to secure

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their investments.

Telenor of Norway, Sistema of Russia arethe most aggressive players among the new operators and haveset up infrastructure across the country.

Telenor, a majority shareholder in Uninor, claims to haveinvested over Rs 14,000 crore in Indian operations, whileSistema, a majority joint venture partner in Shyam-Sistems, haspumped in over $ 2.5 billion (about Rs 12,000 crore).Both are likely to particiapte in the forthcoming auctionof 2G spectrum to continue their operations and secureinvestments.

Telecom regulator Trai has already issued a consultationpaper in this regard, seeking industry and other stakeholders'views before finalising the recommendations.

PTI