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3G roaming pact to cause revenue loss to govt: DoT tells SC

TDSAT quashed a cumulative penalty worth Rs 1,200 crore imposed by DoT on the three telecom operators for violating a licence agreement. However, DoT continues to maintain that such pacts violate the licence agreement.

October 10, 2014 / 14:48 IST
     
     
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    Moneycontrol Bureau

    In a petition to the Supreme Court, the Department of Telecommunications (DoT) says Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order allowing Idea, Vodafone and Airtel to continue with 3G intra-circle roaming (ICR) pact in areas where not all of them owned 3G spectrum can cause huge revenue loss to the government or the exchequer.

    TDSAT quashed a cumulative penalty worth Rs 1,200 crore imposed by DoT on the three telecom operators for violating a licence agreement. However, DoT continues to maintain that such pacts violate the licence agreement.

    Upon winning the 3G spectrum in 2010 auction, the three telecom operators Airtel, Vodafone and Bharti signed the ICR pact, according to which Airtel had sought access to Vodafone's 3G network in four circles (Kolkata, Maharashtra, UP East and Haryana), while Vodafone sought the same in six 3G circles of Airtel (UP West, Bihar, Assam, Karnataka and North East) and seven circles of Idea Cellular (Jammu and Kashmir, Himachal Pradesh, Andhra Pradesh, Kerala, UP West, Madhya Pradesh and Punjab). Idea is yet to launch 3G services in Punjab. Idea Cellular too bagged access to provide 3G services on Vodafone's network in Chennai, Tamil Nadu, Delhi and Kolkata.

    Airtel had won 3G spectrum rights in 13 of the 22 telecom circles, Vodafone won 9 and Idea Cellular bagged rights for 11 circles.

    DoT first issued a notice to the three telecom players on December 23, 2011. It asked them to stop 3G intra-circle roaming within 24 hours, which was challenged by the telecom operators.

    Two other telecom players - Tata Teleservices and Aircel - too had signed 3G ICR pact. They, however, immediately cancelled their agreement after the DoT notice.

    first published: Oct 10, 2014 12:39 pm

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