The Department of Telecommunications (DoT) may soon begin to issue show-cause notices for cancellation of licences to new players who are likely to take more than the 104 weeks time given to roll out services.
Licences issued in January 2008 by A. Raja, former minister of telecommunications and IT are being scrutinised by the DoT. These operators have failed to launch services as stipulated in the licence conditions.
As per the conditions of licence, the licencees are required to roll out the services in 90 per cent of the service area in metros and 10 per cent in district headquarters within 12 months (52 weeks) from the date of award of licences.
A few of the new operators who were granted licences in 2008 have already missed the first 52-week deadline and are now approaching the second 52-week deadline. Prior to this, the DoT had served notices to 119 telecom licencees for suppressing information while applying for licences and then missing the timeline to roll-out services in respective circles. The DoT had levied Rs 2.18 billion as liquidated damages on several new operators for missing roll-out schedule. The operators have already paid over Rs 900 million.
In case show cause notices are issued for cancelation of licences, operators would be given 60 days time to respond to the notices before the DoT takes a final decision.
