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2G case: Govt notice to Idea, Eitsalat DB for cancelling their licences

Earlier in the day, a similar notice has been isseud Etisalat DB too for cancellation of its licence in Delhi and Mumbai circles.

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The government today issued notices to Aditya Birla group company Idea cellular for Punjab circle and new operator Etisalat DB for Delhi and Mumbai for cancelling their 2G licences for missing roll-out obligations.

"Yes, a notice has been issued to Idea Cellular for Punjab circle," department of telecommunication (DoT) secretary R Chandrashekhar told PTI.

Earlier in the day, a similar notice has been isseud Etisalat DB too for cancellation of its licence in Delhi and Mumbai circles.

In Idea's case, the notice has been issued for not meeting roll-out obligations and also for other violations of licence conditions.

DoT on January 10, 2008 issued letters of intent (LoIs) to Idea Cellular for providing Unified Access Services in nine service areas -- Kolkata, West Bengal, Assam, Karnataka, Orissa, North East, Jammu & Kashmir, Punjab, Tamil Nadu (including Chennai).

Later in 2008, Idea Cellular picked up 41.8% stake in Spice Communications.

"We have issued notice to Idea for Punjab circle, the licence of Spice which idea had been acquired by Idea is at stake," Chandrashekhar said.

Idea had completed the merger of Spice with itself in February 2010. However, the DoT is yet to approve the merger.

An official in DoT, however, clarified that Spice's independent licence for Punjab stands.

Etisalat DB was formed after Swan Telecom inducted UAE- based Etisalat as a foreign partner with 45% equity stake. It has licences for 15 circles.

Earlier, the telecom ministry had collected over Rs300 crore financial penalty from most of the new operators, including Etisalat DB, for not starting services in stipulated time after getting the licences and spectrum.

Etisalat DB's former managing director Shahid Balwa is in judicial custody for his alleged involvement in the 2G spectrum scam of 2008. After his arrest by CBI, Balwa had resigned from his post.

According to sources in DoT, notice to Etisalat is for cancellation of the licence is as per the recommendations of telecom regulator TRAI which had asked the government to impose penalty and cancel as many as 69 new licences for not rolling out services within time frame.

Etisalat DB was the only new operator to get spectrum in Delhi circle. But it did not start services even after two years of getting spectrum and it is is a violation of licence terms and conditions.

All the parties issued notices have 60 days to respond.

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