Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has set aside the Department of Telecommunications (DoT) decision to reduce the validity of Qualcomm?s broadband wireless access licences (BWA) from 20 years to 18 years and six months.
In its ruling Justice SB Sinha, chairman, TDSAT has stated that DoT cannot violate the licence period and modify the terms of rollout obligation and allocation of spectrum by reducing the validity of Qualcomm?s wireless broadband licences. The tribunal has directed DoT to follow the terms and conditions mentioned in the Notice Inviting Applications.
This is the second time that the tribunal has overruled DoT?s decision against Qualcomm?s BWA licence. Earlier, TDSAT had overruled DoT?s decision to cancel BWA licences awarded to the company.
Qualcomm had won BWA spectrum in four circles Delhi, Mumbai, Kerala and Haryana for Rs 49 billion in June 2010. However, DoT did not award Qualcomm licences on the grounds that it had several issues with its application and thus there were delays in awarding the licence to the company.
Following DoT?s decision to cancel its licences, Qualcomm approached TDSAT. Thereafter, TDSAT directed DoT to award licences to Qualcomm.
Subsequently, DoT decided to award licences to Qualcomm but reduced its licence period from 20 years to 18 years six months and also brought down its roll-out obligation from five years to three-and-half years.
Also at the time of bidding of the licences, Tulip Telecom had 13 per cent stake in the consortium which bid for BWA spectrum along with Qualcomm. In March, 2012, TDSAT had directed Qualcomm to deposit Rs 4.1 billion as demanded by DoT from Qualcomm?s Indian partner, Tulip Telecom. At the same time, it directed DoT to grant licences to Qualcomm within a week after the dues were deposited.
Later in May, 2012, Qualcomm sold 49 per cent equity in its BWA licences to Bharti, which was looking at expanding its 4G presence in India.
