3G violation: DoT readies draft show-cause notice against Bharti Hexacom and Idea Cellular

The Department of Telecommunications (DoT) has prepared the draft show-cause notices against Bharti Hexacom, a joint venture of Bharti Airtel with state-run TCIL, and Idea Cellular for alleged violation of cellular mobile telephony services (CMTS) licence conditions by allowing use of 3G spectrum under the intra-circle roaming pacts.

It has earlier sent show-cause notices to Bharti Airtel, Vodafone and Idea Cellular for the same reason.

The show-cause notices for Bharti Hexacom and Idea Cellular are for alleged violation of 3G licence terms for the North East telecom region, according to a recent discussion.

In the North east service area, Bharti Hexacom has allowed to use its 3G spectrum or network for providing 3G services by Vodafone Spacetel and Idea Cellular to their customers under the intra-circle roaming pacts between them.

DoT may impose a financial penalty not exceeding Rs 50 crore for violation of terms and conditions of the licence agreement, according to the discussion.

It was also mentioned that the department would proceed against Tata Teleservices and Aircel or Dishnet Wireless separately, as their 3G ICR agreement is different from the agreements between Bharti Vodafone and Idea. However, Tata Teleservices has stated, in reply to earlier show-cause notice, that the company did not provide any service under the 3G ICR pact, only the agreement was signed.

DoT has earlier issued such notices for violation by Vodafone in Delhi, Chennai, Uttar Pradesh (East), Haryana, Maharashtra, Tamil Nadu (excluding Chennai) and Kolkata service areas. Bharti Airtel is likely to be served notice for violation in Assam, Bihar, Karnataka, Mumbai, UP (West) and West Bengal.

Following the notice, the country’s second largest telecom service provider Vodafone today said that imposing penalty for the 3G intra-circle roaming issue would undermine investors’ confidence.  Vodafone has also requested DoT to “withdraw the show cause notice”, and provide explanation to its stand on 3G roaming agreement.

Earlier, DoT had issued ‘taker’ notice to Bharti Airtel, Idea Cellular and Vodafone for alleged violation of licence norms under 3G intra-circle roaming agreement. The ‘taker' notice was for accessing the 3G spectrum of other player where the company did not had the airwaves.

While Bharti Airtel has challenged the ‘taker’ notices in Supreme Court, Idea Cellular has done the same before the Delhi High Court.