The Department of Telecommunications (DoT) has asked Idea Cellular and Vodafone India to stop offering 3G services via roaming pacts, say news reports.
Issuing a showcause notice to both the operators, DoT has asked them to pay Rs 500 million per circle where they have been offering 3G services through such pacts.
In September 2012, DoT had issue a showcause notice to Bharti Airtel on the same issue. However, in October 2012, the Delhi High Court granted a stay on the government order which stated that the operator stop offering 3G services via roaming agreements.
Operators like Bharti Airtel, Idea Cellular and Vodafone India won 3G spectrum in 13, nine and 11 circles, respectively. A few of these operators collaborated to offer 3G services in circles where they did not have 3G licences through intra-circle roaming pacts.
DoT, in December 2011, directed the operators to discontinue offering 3G services through roaming pacts outside their licensed circles and termed such agreements between the operators as ‘illegal’.
Subsequently, the operators challenged the order before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), which gave a split verdict on the matter in July 2012.
Thereafter, the Additional Solicitor General of India stated that fresh showcause notices could be issued for imposition of penalty, including cancellation of licence. Further, he said that the revenue generated through unfair means can be recovered through separate showcause notices.
