The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has asked Videocon Telecommunications to renew its performance bank guarantees (PBG) for three months in the circles of Uttar Pradesh (UP East) and Madhya Pradesh (MP) circles.
However, TDSAT has exempted the operator from extending the PBG for the Mumbai circle. The PBG is paid by an operator to the Department of Telecommunications (DoT) at the time of allotment of spectrum. The DoT returns PBG on completion of the roll-out obligation by the operator.
According to TDSAT there was ‘controversy’ over the certificates of the operator completing the roll-out obligations in the two circles, therefore it was necessary to hear the petition in detail. At the same time, the tribunal stated that the operator was not bound to extend the PBGs for Mumbai circle. However, pending final hearing, TDSAT directed Videocon Telecommunications to give an undertaking to the effect in case any amount becomes due to it, the operator will pay the same to DoT.
Earlier, Videocon Telecommunications had submitted PBGs worth Rs 300 million to DoT. It has secured Rs 50 million for UP East and MP, respectively, and Rs 200 million for Mumbai circle. Subsequently, the operator received a letter from DoT asking it to extend PBGs by January 7, 2013 and failing which its PBGs would be invoked. Following the letter, Videocon Telecommunications approached TDSAT to direct DoT not to take any coercive action against since it had already filed a petition before TDSAT in October 2012 seeking release of its PBG as it had completed the roll-out obligations in the three circles. The operator pointed out that DoT was yet to file a reply to this petition.
The company had produced test certificates of 24 district out of 48 in UP East, 34 districts out of 68 of MP and 286 base tower stations in the Mumbai circle. However, DoT disputed the facts claiming that Videocon was yet to submit the digital map of its network. Moreover, DoT also raised doubts over the test certificates and contended that certificates issued in certain areas did not fulfill the criteria prescribed by it.
