The Department of Telecommunications (DoT) is looking to frame a new set of penalty norms for operators before the next round of spectrum auction which is expected to start in January 2014.
According to MF Farooqui, secretary, DoT, the new policy framework would cover issues such as imposition of penalty on operators for various violations, mergers and acquisitions (M&A) guidelines and the spectrum auction. The department has already come out with policy guidelines on other subjects such as unified licencing and foreign direct investment.
DoT expects to frame the new penalty norms by November-end 2013. Earlier, in April 2013, the Telecom Regulatory Authority of India had recommended classifying penalty in two categories: minor and major. The regulatory body had suggested the imposition of a maximum penalty of up to Rs 2.5 million on operators in case of minor violation and up to Rs 100 million for a major violation.
The government is looking at rationalising penalty norms with a view to discourage service providers from contesting high penalty claims in courts. In the past, operators have often taken legal course against the imposition of a high penalty by DoT, leading to the government facing delays in realising the due amount.
As per the industry estimates, DoT has imposed total penalties of Rs 68.50 billion on operators for violations such as late submission of papers and absence of placards on mobile towers.
