The new operators continue to face challenges in the Indian telecom space.
Following the Supreme Court?s verdict in the 2G case, several new players, including Etisalat DB and S Tel announced their plans of exiting the sector. Meanwhile, others like Sistema Shyam TeleServices Limited (SSTL) and Uninor took rapid steps to protect their interests in the country.
In so far, S Tel has terminated services in all its circles and is currently in the process of negotiating the terms of a final settlement with its partner firms. Meanwhile, Etisalat DB had said that it planned to take action against its Indian joint venture partners on grounds of fraud and misrepresentation.
The company had initiated legal proceedings against Vinod Goenka and Shahid Balwa, both promoters of DB Realty and Majestic Infracon Private Limited, a DB Group company. Meanwhile, the company had advised its customers in India to transfer their mobile number to another operator.
Now, however, the Telecom Regulatory Authority of India (TRAI) has asked both companies to reinitiate their services within three days.
According to the regulator, the Supreme Court had clearly stated in its verdict that the operators facing licence cancellation had four months to wind up their operations. Also, TRAI said that existing licence conditions stipulate that the operator has to maintain the quality of service in the interim period before surrendering the licence.
The regulator also pointed out that operators are required to provide a 60-day notice before closing operations.
