COAI seeks cancellation of Tata Teleservices' GSM licences
The Cellular Operators Association of India (COAI) has approached the Department of Telecommunications (DoT) asking it to withdraw spectrum allocated to Tata Teleservices Ltd (TTSL) in 8 service areas and put them up for auction.
"We earnestly request DoT to withdraw GSM spectrum allocated to TTSL and allocate the same through fair auction process," GSM industry body COAI said in the letter to Telecom Secretary M F Farooqui on Friday.
According to COAI's interpretation, 19 GSM licences of TTSL were cancelled by Supreme Court through its order on February 2, 2012.
No immediate comments were received from TTSL.
Last year, GSM industry body had written to the then Telecom Secretary R Chandrashekhar requesting that the DoT auction the TTSL spectrum in question.
The industry body, which represents telecom majors like Airtel, Vodafone, Idea, cited legal opinion of former Solicitor General Rohinton Nariman in this matter.
"The allocation of spectrum of TTSL stood quashed by way of order dated 02-02-2012. As a result thereof, the said spectrum automatically stood reverted," Mr Nariman's opinion attached to COAI letter said.
"There was therefore no question of a direction to DoT to take back the spectrum," he added.
The industry body has maintained said that airwaves to TTSL were allocated following two press releases issued by DoT on January 10, 2008.
The Supreme Court cancelled allocation of spectrum through these press releases and other subsequent allocation. It has maintained that a total 141 licences need to be cancelled, including 19 GSM licences of Tata Teleservices, as the apex court had ordered cancellation of all licences issued in 2008 by then Telecom Minister A Raja.
The DoT has informed apex court in January 2013 on the action taken by it which included information about number of licences cancelled.
COAI said, "DoT's inaction in withdrawal of GSM spectrum allocated to TTSL and re-allocating it through fair auction process has led to huge financial loss to the national exchequer...worth at least Rs 8,674 crores, based on last reserve price."
The apex court in its another order in February 2013 asked the DoT to auction entire spectrum released as a result of cancellation of 2G licences in 2012.
TTSL is present in both CDMA and GSM space.
