The Department of Telecommunications is expected to issue show-cause notices to nine operators, asking why their mobile permits issued in 2008 should not be cancelled for failing to meet roll out obligations.
These operators are expected to be served the notices within ten days. Also, it is believed that DoT may begin sending out final orders in May 2011 for licence cancellation to operators who were ineligible to get these mobile permits.
According to a report released in November 2010 by the Comptroller and Auditor General of India (CAG), 85 of the 122 mobile permits issued by former telecom minister A. Raja were invalid as they had been allotted to companies that submitted fictitious documents. Moreover, it is believed that DoT is close to concluding its legal scrutiny of responses received from operators after it sent the first set of notices.
Prior to this, DoT had sent out eight notices for failure to rollout services within the stipulated deadline. Of these, two were issued to Etisalat DB (earlier known as Swan Telecom), three to Sistema Shyam Teleservices Limited and three to Aircel.
The operators will get 60 days to respond to why their licences should not be terminated for failure to roll out networks, as per the licence conditions. Earlier, 119 notices were issued and the government has collected over Rs 3 billion in penalties.
