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The fate of the extension of telecom licences will now be decided based on the opinion of the Additional Solicitor General AS Chandiok.
The Department of Telecommunications (DoT) will reach out to the ASG seeking guidance on whether DoT needs to take any further step to safeguard the Government’s interests.
According to a recent discussion, DoT will send the responses from the companies on the much-discussed issue of extension of operating licences, which are due to expire in November 2014, to the ASG.
Earlier, DoT has rejected applications of Vodafone India, Bharti Airtel and Loop Mobile (India) seeking extension of licences under the 900 MHz spectrum in a few circles that will expire in November 2014.
DoT had issued the letters of rejection based on the legal advice from the ASG and his team, on the issue. DoT had said that the companies will have to obtain Unified Licences on expiry of existing licences.
While Vodafone India and Loop Mobile (India) have replied to DoT following the letters of rejection, Bharti Airtel, which was also being issued similar letter of rejection, did not respond back to DoT, according to a recent discussion.
The incumbent GSM telcos had bought licences in 1994 with 20-year tenures. In December 2012, Vodafone had written to DoT secretary R Chandrashekhar mentioning that the extension was sought under Clause of 4.1 of the Unified Access Service (UAS) licence agreement.
In February, Vodafone had moved Delhi High Court challenging DoT’s decision to auction the 900 MHz spectrum.
After DoT had sent the letter of rejection, Vodafone said in a statement: “Vodafone is deeply disappointed with the summary rejection of its request for extension of its licences in the Delhi, Mumbai and Kolkata service areas by DoT. This decision is against the interests of several million of our customers in these cities/circles. Vodafone has also been consistently contributing several crores in revenue to the national exchequer. Clearly, in DoT’s opinion, these aspects are not important for determining expediency.”
The licences of 900 MHz spectrum come to operators with a 20-year validity. According to Clause of 4.1 of UAS, the government can extend the licence period by up to 10 years if the operator makes a request in the 19th year of the licence period.
The company had stated in its letters to DoT that the extension is “expedient and in public interest”. “The 19th year of licence has commenced on November 29 for Mumbai circle and November 30 for Delhi and Kolkata circles... We request you to extend the period of our licence ...on terms to be mutually agreed,” the company said in the letters signed by T V Ramachandran, resident director (regulatory affairs and government relations) at Vodafone India Ltd.
