No 2G spectrum for failed bidders: Supreme Court

Telecom operators which failed to bag spectrum in the last round of auction and which did not bid at all should not be allowed to continue operations following cancellation of their licences, the Supreme Court suggested on Monday.

“You (Department of Telecommunication) have to take a position on those who have been unsuccessful in auction conducted on November 12 and 13, 2012. They cannot be allowed to operate in the events when there are bidders who have been successful. Those who did not go for the bid are also not entitled to continue,” a bench comprising justices G S Singhvi and K S Radhakrishnan said while reserving its order on the issue.

Allowing those who were unsuccessful and those who had not participated in the auction to continue operations would generate more litigation, the bench said. The court has, vide various interim orders, allowed the companies whose licences were quashed by its February 2, 2012 ruling to continue operations till the fresh auction for 2G spectrum is completed.

Such companies are liable to pay the reserved price after January 18, 2013, the bench held during the hearing.