After Etisalat DB, Sistema Shyam TeleServices Limited (SSTL) and Uninor, Loop Telecom has paid Rs 27 million to the Department of Telecommunications (DoT) as penalty for delay in network roll-out. Loop Telecom, earlier known as BPL Mobile, has licences in 21 circles but is yet to get spectrum in the New Delhi circle.
Mid December, DoT had issued show-cause notices to these operators for missing their roll out obligations as stipulated in their licences. They were given 15 days to respond after which their licences stood a chance of being cancelled, post a 52 week grace period.
In fact, in November for the same reason, the Telecom regulatory Authority of India (TRAI) had recommended that the licences be cancelled in at least 15 circles of Etisalat, 10 circles of SSTL, 8 circles of Uninor, 10 circles of Videocon and 19 circles of Loop.
SSTL, Uninor and Etisalat DB paid up on 30 December, 2010, but they have made it clear that the payment has been made under protest.
In a media statement, Etisalat DB had said, ?’Etisalat DB has received communication from the DoT for imposition of liquidated damages towards roll-out obligation for the first year in respect of four telecom circles aggregating to Rs 99 million. Etisalat DB has made payments for Rs 99 million under protest.?
In a separate statement, Uninor said the company has deposited the penalty (amount not disclosed) as claimed by DoT but under protest. ?Various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll-out and were beyond our control,? the company said in the statement.
?We have requested the DoT to consider these in its assessment. As a serious long term operator with considerable presence in India, we intend to continue delivering the benefits of competition to customers in the country,? the statement read.
It is believed that SSTL has paid Rs 110 million as penalty.
