DoT seeks extension of telecom licences

In a partial relief to telecom operators which stand to lose their licences after January 18, the Department of Telecommunication (DoT) on Tuesday filed an affidavit in the Supreme Court seeking extension of licence periods till after the second round of auctions.

It, however, suggested the players would be charged for spectrum from January 19.

“In the event that this Hon’ble Court is inclined to continue to permit these existing operators to offer services till the commencement of operations by the successful bidders in the proposed auction, the Government of India respectfully suggests that this Hon’ble Court may impose a condition that such operators will be liable to pay for the spectrum allotted to them, the price discovered for such spectrum in the proposed auction or the reserve price, whichever is higher, with effect from 19.12.2012,” the DoT affidavit read.

The Supreme Court had in February last year ordered the cancellation of all 122 telecom licences issued during the tenure of then telecom minister A Raja.

If the court does not extend the period of operation for operators whose licences stand quashed, the government may issue temporary licences to operators who show interest in continuing operations, said DoT.

“The government may consider issuing temporary licences to such operators till the commencement of operations by the successful bidders in the proposed auction and subject to the further 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 January 19.”

According to DoT, such an arrangement will both avoid disruption of services to subscribers and  safeguard public revenue. “It would also give opportunity to the service providers to serve their subscribers uninterruptedly.”