 "High Court stays govt order asking Bharti to stop 3G services")
With the stay, Airtel will not have to pay the Rs 350-crore penalty, imposed on it by the DoT, till the court gives the final order. The court has also allowed Airtel to continue to offer its services, but has ordered it to keep all its revenue from 3G in a separate bank account.
The company will also have to sign an affidavit saying the government could cash its bank guarantee if the state’s stance on the issue is found correct.
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Bharti Airtel declined to comment on the issue.
Bharti Airtel was offering these services in seven circles, where it does not have 3G spectrum, by signing intra-circle agreements with Vodafone India and Idea Cellular. The DoT notice had also asked Bharti to pay a penalty of Rs 50 crore per circle.
Vodafone India has not received any notice to date. Idea Cellular already has a stay from the Delhi High Court against the stopping of 3G services through the intra-circle agreements.
Following the DoT notice, Bharti Airtel had moved to the Delhi High Court on the same.
The seven circles are Haryana, Maharashtra, UP (East), Kolkata, Gujarat, Kerala and Madhya Pradesh.
Bharti is the country’s largest telecom operator. It has 6.8 million 3G customers across the country, of which 5.2 million are active. The telecom company offers 3G services in 13 more circles, where it has bought spectrum in the 3G auction. Subscribers in these circles will not be hit by the order.
Idea Cellular has 2.8 million 3G customers and Vodafone has 2.5 million.
The three telcos together have 12 million 3G subscribers. Of these, according to estimates, 30 per cent are in circles where the operator concerned does not have 3G spectrum.