COAI petition challenging DoT's dual tech policy dismissed

In what may prove to be a watershed ruling for settling questions of telecom policy, the TDSAT today upheld the concept of dual technology in telecom licenses. TDSAT dismissed the Cellular Operators Association of India's (COAI's) petition challenging the dual tech policy of Department of Telecommunications (DoT). In its judgement, the Telecom Tribunal said the concept of dual technology is not new and is part of telecom policy since 1999.

This is clearly a boost for companies like Reliance Communications (R-Comm), Tata Teleservices , HFCL and Shyam Telecom , which had benefited from a policy change in 2007 by the Department of Telecom, which allowed them to use an alternate technology on their existing license. This was called the dual technology concept.

Today’s TDSAT judgement says that there is no wrong in the DoT having done it. In fact it goes on to say that dual technology is not a new concept and it has been recognised in previous policy actions of the Department of Telecom, in fact right from 1999. So, this is clearly a positive for companies like R-Comm who got GSM operational licenses and then have in fact since operationalised those networks.

Companies with Dual Tech Licences

- Reliance Communications

- Tata Tele

- Shyam Telecom

- HFCL

The Tribunal said the Telecommunications Regulatory Authority of India (TRAI) did not exhibit required degree of care and gave the impression that dual technology was something new. In a double whammy for the petitioners, the Tribunal also said GSM operators like Bharti, Vodafone and Idea do not have any vested right to receive GSM spectrum beyond 6.2 Mhz

During the hearings, the government said the petitioners had always received more spectrum than they were entitled to under the licence conditions and so the question of violation of contract does not arise. Finally, on the issue of subscriber linked criteria for allocation of spectrum.

The TDSAT has also rejected the petitioner’s argument that it was designed to adversely affect their interests. To their relief, the TDSAT has however held that the DoT has favoured state owned operators BSNL and MTNL over private GSM operators.

With inputs from CNBC-TV18’s Siddharth Zarabi