The Department of Telecommunications (DoT) may speed up the process of cancelling the licences of new operators, say news reports.
While the Supreme Court?s verdict in the 2G case had mandated that the licences be functional for four months, DoT may disregard the deadline, on grounds that these players were not eligible at the time of applying for mobile permits.
Meanwhile, The Supreme Court?s verdict evoked different responses from the new players. UAE-based Emirates Telecommunication Corporation (Etisalat), for instance, has written off investments worth $827 million from its Indian Joint Venture, Etisalat DB. This move is viewed as a deliberate attempt by the operator to exit India. Thereafter, the company initiated legal action against its Indian joint venture partners on grounds of fraud and misrepresentation.
Similarly, Bahrain Telecommunications Company (Batelco) announced the sale of its 42.7 percent stake in S-Tel for $175 million. Batelco will sell its stake to India partner Sky City Foundation Limited at the same price that it paid to acquire its holding in S Tel during 2009. The deal is expected to be completed by October 2012.
On the other hand, the parent companies of operators like Uninor and Sistema Shyam Teleservices Limited (SSTL) have approached various Indian government officials to discuss the issue.
Thereafter, SSTL filed a review petition before the Supreme Court in this regard, wherein the operator said, ??SSTL believes that the Supreme Court in its judgment has not considered several relevant submissions made by SSTL which were specific and unique to its case.?
?SSTL also believes that it is being unfairly penalised for acting in good faith and in reliance on the appropriateness of the procedures established by India?s telecommunications authorities.?
Further, despite several of its peers announcing their plans to exit the Indian telecommunications space, Videocon Telecommunications Limited (VTL) plans to continue its telecom operations in India.
The company has reportedly stated that it will participate in the upcoming auction for 2G spectrum. The company faces cancellation of 21 licences, as per the Supreme Court?s verdict.
