TRAI acts on 2G scam: Cancel 69 liscenses of new operators

By siliconindia   |   Friday, 19 November 2010, 17:39 IST
Printer Print Email Email
Bangalore: Telecom Regulatory Authority of India (TRAI) with a better check on the details provided by CAG has signaled to fire 69 liscenses. The services of the operators like Uninor, Aircel, Etisalat, Loop and Videocon will either be canceled or be subjected to hefty fines. It's been proposed that licenses be cancelled for the non-roll out of services for Loop Telecom in 14 service areas; Etisalat DB Telecom in two service areas; Sistema Shyam Teleservices in 10 service areas and Unitech Wireless in eight areas, he said. The regulator also proposed that 13 licenses of Etisalat DB Telecom, five of Loop Telecom and 10 of Videocon Telecommunications be cancelled as their roll outs of mobile phone services weren't satisfactory, TRAI reviewed that licenses issued in 2008-09 were not done under proper license obligations. TRAI found that license obligations were not met in 34 cases, delay in rolling out the services in 4 cases and services rolled after much delay in 31 cases. Sistema-Shyam TeleServices (SSTL) is also said to have failed to meet roll-out obligations in 10 circles and has the telecom regulator has recommended cancellation of its licences in those areas. However, immediately the company has issued statement refuting TRAI's allegation. "Amongst the new telecom operators, Sistema Shyam TeleServices Ltd (SSTL) was the first company to launch its services. The Company has complied with all its roll out obligations in all the 22 telecom circles and has already secured over 7 million voice subscribers and over 3,00,000 data customers," says an SSTL's spokesperson. The 1.7 lakh Crore loss to the government from the 2G scam will now turn expensive for these newbie operators, who grabbed the licenses faulting many of the clauses during former telecom minister A Raja's reign. It's quite a miry situation, where though everything stands clear and yet actions are delayed.