The Department of Telecommunications (DoT) has asked Videocon not to renew its performance bank guarantees (PBG) in the Uttar Pradesh (East) and Madhya Pradesh circles until the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) takes a final view on the total amount payable towards such renewals.
The DoT?s directions come over as a result of differences between Videocon and the DoT regarding the operator meeting rollout obligations in the two circles. Earlier, while being allocated 2G spectrum in the two circles, Videocon had submitted PBGs worth Rs 100 million. While the operator rolled out services in due course of time in the Madhya Pradesh circle, it is yet to launch services in the Uttar Pradesh (East) circle.
Further, Videocon?s PBGs in both the circles expired on July 9, 2012. DoT had originally asked Videocon to extend its PBGs in both the circles by January, 2013 failing which the former would invoke Videocon?s PBGs. Following the expiry of its PBGs and anticipating a coercive action from DoT, Videocon approached TDSAT. The tribunal in turn asked DoT not to take any action against Videocon. The matter will next be heard by TDSAT on August 26, 2013.
