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Telcos face fresh DoT action on 3G roaming pacts

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 Habil Khorakiwala, chairman of Wockhardt
Habil Khorakiwala, chairman of Wockhardt

Fresh trouble could be brewing for telcos on the issue of 3G roaming. The department of telecommunications (DoT) is preparing to send a notice to service providers that are allowing telcos to ride on their network and provide 3G services.

The move from DoT has come after it sought opinion from the Additional Solicitor General. The Telecom Disputes Settlement Appellate Tribunal (TDSAT) had earlier given a split verdict on the petition from telcos on whether such roaming should be permitted.

Sources told NDTV that the Additional Solicitor General has told DoT that not only can it issue a fresh notice, it can also go ahead and cancel the licences of the telecom companies. According to the legal opinion, DoT can recover money earned by telcos through this service under the doctrine of ‘unjust enrichment’. This action could be taken in addition to termination of licences.

The Additional Solicitor General, however, has asked DoT not to invoke the penalty clause that allows DoT to charge penalty of up to Rs 50 crore from telecom operators. DoT, in a fresh letter to the Additional Solicitor General, has sought reasons for not imposing a financial penalty.

It has also asked the Additional Solicitor General to vet the draft show-cause notice that it plans to send to the telecom companies.

DoT’s main opposition to the 3G roaming pacts signed by operators was that under these agreements even those operators that did not win spectrum in a particular circle during 3G auction were offering the 3G services. They were doing so by using the spectrum and network of the operator with who they had signed a roaming pact.

Telcos claim that before the 3G auction DoT had clarified that such roaming pacts will be allowed and, therefore, their services are not illegal. Telcos are threatening fresh legal action if DoT sends them any more notices.

The government had collected over Rs 1 lakh crore by auctioning 3G and broadband wireless access spectrum (4G) in 2010.