The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has asked the Department of Telecommunications (DoT) to file a reply within ten days to the challenge raised by operators over penalties imposed by DoT for their failure to roll-out services within the stipulated period of one year, say news reports.
The TDSAT also asked the operators to file their rejoinder within 10 days thereafter. TDSAT?s direction came over a batch of petitions filed by various operators challenging the demand for substantial sums as liquidated damages for their failure to roll-out their obligation within the stipulated period.
TDSAT listed the matter for further hearing on May 2, 2011. Earlier, in its interim order, TDSAT had directed the operators to pay 60 per cent of the liquidity damages demanded by DoT. The operators had already paid liquidity damage charges for some circles before challenging the penalty imposed by DoT.
The demand of penalty by DoT was opposed by various operators, including Uninor, Videocon Telecommunications, Sistema Shyam Teleservices, S Tel, Aircel, Dishnet Wireless and Idea Cellular.
DoT had sent notices to several firms, which got new 2G licences bundled with start-up spectrum, but have not started offering services in various circles. As per the conditions of the Unified Access Service Licences (UASL), the operators are required to roll out their networks within a year from the date of allocation of spectrum.
According to the agreement, in case new licensees fail to roll out services within the stipulated period, DoT shall be entitled to recover liquidated damages.
