The Department of Telecommunications (DoT) is unlikely to cancel new operators? licences, as many of the companies have already made large investments and have established their presence in the country, according to news reports. The new licensees have invested over Rs 170 billion on their network.
Moreover, the DoT said that any cancellation would have international repercussions, as many overseas telecom companies have bought controlling equities in new operators like Telenor and Etisalat. The Comptroller and Auditor General of India (CAG) has already stated various discrepancies in issuing licences to operators like Unitech, Datacom, Loop and Etisalat DB, among others.
The government can cancel the UAS licences in case it is found the licences were given without following procedures or with the intention of favouring some operator. Even under the terms of licences, the DoT can cancel the licences if roll-out obligations are not met (there is a grace period in which the operator can pay penalty) or if it is in the name of public good.
