DoT pulls up telcos for initiating 3G pacts

Another shocker is on its way for Bharti Airtel, Vodafone and Idea. The department of telecom has asked these companies to explain why penal action including cancellation of their licenses in particular circles should not be initiated for forming 3G intra-circle roaming pacts. The TDSAT had delivered a split verdict on the legality of ICR pacts. CNBC-TV18's Malvika Jain reports what the DoT's fresh showcause notices and stoppage notice mean for these companies.

The government is now issuing showcause notices to these three companies asking them to explain why penal action should not be taken against them. It includes cancellation of their licences in those circles where they have been offering 3G services despite the fact that they have not been allocated 3G spectrum in those particular circles. A penalty upto Rs 50 crore will also be imposed on these companies if they fail to explain their position to the government within a period of 60 days.

The other thing which the government is asking them to do is to stop offering these services as per these pacts and intimate the government within three days of the action. But, as of now, they will have to stop offering 3G services in circles where they do not have 3G spectrum within three days and also explain to the government what is their position going forward.