DoT, TRAI split on rollout laggards | india | Hindustan Times
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DoT, TRAI split on rollout laggards

The department of telecommunications (DoT) has informed the telecom regulatory authority of India (TRAI) that it cannot cancel licences of telecom services providers for not rolling out networks.

india Updated: May 12, 2011 21:53 IST
Manoj Gairola

The department of telecommunications (DoT) has informed the telecom regulatory authority of India (TRAI) that it cannot cancel licences of telecom services providers for not rolling out networks.

Earlier, TRAI had asked DoT to cancel 130 licences for not meeting rollout obligations. TRAI also recommended that in the case of companies that have dual licences, DoT should impose rollout obligations.

DoT has said it has accepted this part of the recommendation, and that it has informed TRAI that licences would be amended soon to incorporate it.

The department has also decided that all cases where delay in implementation of networks is less than 52 weeks, the cases will be referred back to TRAI. In all cases where the delay is more than 52 weeks, notices for cancellation should be issued to the companies.

Consequently, DoT issued termination notices to eight licencees and notices for liquidated damages have been issued for 124 licences. DoT has said nine more companies may qualify for issuance of termination notices.

DoT has also pointed out that there is difference between DoT and TRAI in calculating liquidated damages. TRAI has calculated liquidated damages from the date of issuance of licence, and not considered delay in granting spectrum to the operators.

DoT, which has got its data from the wireless planning cell, has taken into account government delays.