Videocon Telecommunications and Etisalat DB have approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), asking it to revise the financial bank guarantees (FBGs) given to the Department of Telecommunications (DoT) at the time of spectrum allotment.
TDSAT has asked DoT to file its reply within two weeks. Further, it has asked DoT not to take any coercive action against Videocon and Etisalat until further orders.
During the proceedings, the counsels appearing for Videocon and Etisalat contended that as per the Universal Access Service Licence (UASL) terms and conditions, their FBG should be revised.
The two companies have contended that as per clause 21.2 of the UASL licence conditions, they have already paid licence fee for the two quarters to DoT and thus their FBGs should be revised.
Etisalat, which has been given spectrum in 15 circles has deposited Rs 5.30 billion as FBG. The company?s counsel said that the FBG given to DoT was going to lapse in December 2011 and it has not been revised yet despite several reminders.
The tribunal has set December 8, 2011 as the date for the next hearing.
