Idea Cellular seeks issuance of LoIs in 9 circles

GSM major Idea Cellular has sought issuance of Letters of Intent (LoIs) for the nine pending Universal Access Service Licence (UASL) applications, stating these have been "long overdue".

In the letter dated December 27, the Aditya Birla Group company has also 'cautioned' the Department of Telecommunications (DoT) against allocating spectrum in these circles.

Idea stated it had applied for GSM mobile licences in nine circles on June 26, 2006. These were for service areas of Tamil Nadu (including Chennai), Karnataka, Punjab, Orissa, West Bengal, Kolkata, Assam, North East and Jammu & Kashmir.

The company has stated a clause in UASL applications that an application should be decided within 30 days of its submission, and added that under the guidelines Idea should have allocated LoIs 18 months ago.

Idea said it has blocked financial resources for the licences, but "have been prevented from effecting payment solely because the DoT has not issued the LoIs".

"We confirm we wish to effect payment of Rs 684.59 crore towards license entry fee, and furnish financial and performance bank Guarantees of Rs 220 crore and Rs 88 crore, respectively. These are against the Letters of Intent due to us," it said.

The company also cautioned DoT stating that "no GSM initial spectrum allocation pertaining to applications subsequent to our of June 26, 2006, for the said nine service areas can be entertained until our applications, along with associated initial spectrum, are first disposed".

It also said that any manipulation of initial spectrum allocation priority, achieved through the device of manipulation of dates of payment demands, would constitute an assault on government policy.