The Department of Telecommunications (DoT) has finally cleared spectrum allocation for US chipmaker Qualcomm Inc. Following the clearance, the US chipmaker Qualcomm Inc., which won the broadband wireless access (BWA) spectrum in the 2010 auction, will finally get the airwaves that will allow it to start 4G services in the country.
In the BWA auction, Qualcomm Inc., had won spectrum for Delhi, Mumbai, and Haryana and Kerala circles, for a total of Rs 49.12 billion. The allocation of spectrum for the company has come with riders. The company has been allotted spectrum for 18 and half years. The term for roll out obligation has been restricted to three and half years.
The US chipmaker Qualcomm Inc was originally awarded a license for a period of
20 years the roll-out obligation to be completed over five years. Unfortunately, the company?s license could not be issued in 2010, along with broadband players. With an objective to keep the playing field level, DoT has reduced the tenure for obligation rollout for Qualcomm Inc.
However, Qualcomm Inc is unhappy with the decision. The US chipmaker is arguing that the delay in allocation of spectrum was because of DoT. Therefore, there should be no case for DoT to reduce the company?s tenure for roll out obligation.
The company is expected to challenge the reduced tenure in court given that it has made it clear to the Ministry that it has no case of penalising it for the delay.
Earlier, the company had written to Kapil Sibal, Minister of Communications and IT, on the matter. It had highlighted its grievance and requested Sibal to look into the issue.
