The Department of telecommunications (DoT) has initiated a field survey to find the facts before taking action against telecom operators who missed their roll- out obligations.
They were given start-up licences in January 2008 by former telecom minister Andimuthu Raja. Last week, he was forced to resign after being embroiled in the controversy over distributing 2G spectrum cheap.
A telecom ministry official said that it is conducting the field survey to ascertain the quantum of violation by these operators. The Telecom Enforcement Resource Monitoring (TERM) cell in the DoT is collecting data after conducting the field surveys. DoT is expected to send show cause notices to these operators soon.
According to the license agreement, operators are required to roll out the services in 90 per cent service areas in metros and 10 per cent district headquarters in other service areas within 12 months of the award of licences.
DoT's move comes in the wake of the Telecom Regulatory Authority of India ( Trai) acting tough against new telecom players who were given start- up licences in 2008 for missing out on roll- out obligations and improper roll-out of services.
It has recommended termination of 69 of the 122 2G telecom licences given to five telcos, including Loop (20), Etisalat DB earlier Swan (15), Sistema- Shyam ( 11), Videocon Telecommunications (10), Uninor ( and Aircel (5). These operators are under the scanner for not effectively rolling out the network services as per the licence terms and conditions for effective utilisation of the scarce spectrum.
The 2G scam involves the indictment by the Comptroller and Auditor General (CAG) of India of A. Raja for irregularities in the allocation of 2G spectrum, causing a loss of Rs 1.76 lakh crore ($ 40 billion) to the national exchequer.
The regulator had recommended that licences given to Etisalat in at least 15 circles be cancelled. These circles were initially given to Swan Telecom, which the CAG has dubbed as a front company of the Anil Ambani group. Swan was taken over by Etisalat. The CAG has also recommended that 10 circles given to Sistema- Shyam be cancelled.
However, Sistema- Shyam, a JV between the Shyam group and Russian giant Sistema has claimed that they have rolled out services in all 22 circles and has over 70 lakh subscribers in India.
Uninor claims it has rolled out services in 12 circles and is in process of starting up in other areas. The newly appointed telecom minister Kapil Sibal on Friday said his ministry will consider Trai's proposal to cancel 69 of the 122 2G licences.
Based on Trai's suggestions, the government is mulling imposing huge penalty on the erring operators. The perception building up in government circles is that if the exchequer has lost money due to under- pricing of spectrum, there should be ways to make up the loss.
and Aircel (5). These operators are under the scanner for not effectively rolling out the network services as per the licence terms and conditions for effective utilisation of the scarce spectrum.