The Department of Telecommunications plans to frame a policy to permit companies which were given mobile licences by A. Raja, former Minister of Telecommunications and IT, to exit the sector, on the condition that they forfeit the bulk of the entry fee.
It is believed that DoT feels that this route is a better option compared to cancelling the licences, as recommended by the Telecom Regulatory Authority of India (TRAI). This is because DoT feels that cancelling licences could lead to protracted legal proceedings, which could affect the sector.
This comes after TRAI rejected DoT’s request to reconsider its recommendations that the government cancel 69 telecom licences of five operators. TRAI also obtained legal opinion from two former judges of the Supreme Court, who support its view.
Further, it is believed that the penalties imposed on operators for failure to roll out services on time and not utilising spectrum allotted to them are likely to be adjusted against the entry fee paid by these companies.
DoT is also examining whether operators should be permitted to selectively surrender licences and spectrum in specific regions.
