The department of telecommunications on Tuesday moved the Supreme Court seeking extension of time for operators whose licences were quashed by the SC and who are supposed to stop their services from January 18.
The DoT?s plea is that as it completed one round of auctions in November 2012 and will hold another from March 11. Therefore, the licensees be permitted to carry on their services till then so that there?s no service disruption. Alternately, it has said that it be allowed to grant temporary licences to firms that are desirous of continuing with their services by participating in the upcoming auctions.
The practical implication of the plea is that CDMA operator Sistema Shyam, which has services in 21 circles but did not participate in the November auctions, can carry on its services till March. The government is trying to ensure that the company participates in the March auction and a ministerial panel has even recommended to the Union Cabinet that the reserve price be reduced by up to 50%, to make bidding attractive for the company.
Any relief would also be applicable for the other two operators ? Uninor and Videocon ? only in the four circles of Delhi (not applicable since neither had services here as spectrum was not granted), Mumbai, Karnataka and Rajasthan, where there were no bids received in the November auctions and the government had reduced the base price by 30% to make it attractive to bidders in the proposed March auctions.
The two companies have already acquired spectrum in six circles each. The plea said that such relief to these firms shall be subject to the condition that they will be liable to pay the price discovered for the spectrum in the proposed auction or the reserve price, whichever is higher, with effect from December 19, 2012.
