Idea, Spice warn govt on spectrum allocation

Birla group firm Idea Cellular Ltd and Modis-owned Spice Telecom today dared the government to allocate spectrum to those mobile operators who submitted applications after them.

"We caution the Department of Telecom (DoT) that no GSM initial spectrum allocation pertaining to application subsequent to ours of June 26, 2006, for nine service areas can be entertained, until our application along with associated initial spectrum, are first disposed," Idea Cellular said in a letter to Telecom Secretary DS Mathur.

In a similar letter, Spice Telecom also warned the DoT and asked it to consider their applications filed in August 2006 for 20 circles.

Idea and Spice's letters follow the DoT's decision to allow dual technology for mobile services, under which Anil Ambani-led Reliance Communications (RCom) became eligible for start-up spectrum in the GSM segment. In fact, RCom deposited the licence fee within a day of DoT changing the policy. The government is also considering issuing letters of intent (LoIs) to other applicants who applied before September 25 this year.

Both GSM companies also reminded the government a clause in the unified access service licence (UASL) that "the application shall be decided, so far as practicable, within 30 days of submission of the application and the applicant company shall be informed accordingly".

"As such, the DoT was required to issue LoIs by July 25, 2006. In any event, it is now over 500 days from the date of application. Meanwhile, we have sent eight letters of reminders, apart from seven personal meetings," Rajat Mukarji, chief corporate affairs officer of Idea, said in the letter.

Spice also asked the government to issue LoIs to them immediately. Spice Telecom, currently operating in Punjab and Karnataka, has sought licences for the remaining 20 circles. Idea Cellular has services in 13 circles and is in the queue for the rest nine circles.

The two companies, along with other GSM operators, Bharti Airtel and Vodafone Essar, have already decided to move the Delhi High Court against telecom tribunal TDSAT's decision not to stay the government's spectrum allocation process.

"We are a large pioneering operator with licences in 13 service areas and have always been seeking to expand to achieve a nationwide presence, like our other competing contemporaries," Idea said.

Spice Telecom accused the government of causing immense hardship and irreparable losses due to delay in issuing the LoIs/licence for applied circles.