Telcos may move SC against TDSAT order on licence extension

The country’s top three mobile operators by subscriber base — Bharti Airtel, Vodafone India and Idea Cellular, are likely to move Supreme Court against the ruling of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) which has dismissed petitions of the three telcos seeking extension of licences coming due for renewal in November in the 900MHz spectrum band.

While companies did not want to comment on the matter, industry sources have said that all the three companies will move the SC on the issue.

On Friday, TDSAT Chairperson Justice Aftab Alam had said in the roder: “We find no merits in the petitions which are accordingly dismissed. The petitioners have failed to establish their right for extension in terms of the relevant provisions in their licences, the matter ends there,” This has come as a blow to the top three telcos as with a favourable order allowing extension of licences companies would not have required participating in the auction that starts on Monday, to ensure uninterrupted services in services areas — Delhi, Mumbai and Kolkata.

TDSAT has also dismissed a similar petition by Loop Mobile. Loop has even decided t not to submit application for bids in the auction. With the TDSAT order, the fate for its 3 million subscribers in Mumbai is uncertain.

Bharti Airtel has such licences in Delhi and Kolkata, while Vodafone has in Delhi, Mumbai and Kolkata. Loop only has operations in Mumbai. Idea Cellular had moved TDSAT against the principal adopted by the Department of Telecommunications (DoT) to not extend licences automatically where they are due to expire next year.

The TDSAT ruling has ensured that Bharti and Vodafone will bid aggressively to retain their existing holdings in the 900MHz band in respective circles. With Reliance Jio entering the scene, the bidding will be fierce in Delhi and Mumbai, while Kolkata circle is also expected to see good interests.

Vodafone had earlier communicated to DoT that it would pay Rs 3,000 crore and a 3 per cent spectrum usage charge (SUC) on annual adjusted gross revenue if the Government agrees to extend its licences by 10 years as the original licence terms noted that if a company seeks extension of licence on the 19 th  year of operations, the Government may extend the same by 10 more years.

TDSAT has, in a separate ruling said Reliance Communications and Tata Teleservices were not entitled to additional spectrum as their dual-technology license approvals have come under the scanner after the Supreme Court cancelled 122 mobile permits given to nine companies in February 2012, after they were found to be illegal. But, Aircel and Dishnet have been allowed to get additional 1.8 MHz.

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