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Telecom giant Bharti Airtel may be soon directed by the telecom department to stop providing 3G services in as many as seven circles, where the operator does not have the licence to provide high-end data services, in next 15 days. According to reports, Airtel will be slapped a fine of Rs. 350 crore, or 50 crore in each of the seven regions where it provides 3G via a roaming agreement with operators Vodafone and Idea Cellular.
A Times of India report says the DoT will soon issue similar notices to Vodafone and Idea Cellular. The report further adds Union telecom minister Kapil Sibal has already given his nod to the move to penalise Airtel and direct the operator to stop offering 3G services outside its licenced circles.
It's not the first time the DoT has attempted to end the 3G roaming pact between the telecom operators. Recently, the telecom department panel recommended immediate stoppage to the arrangement, describing such pacts as “illegal” and “violate licence rules”.
The panel, formed to review 3G roaming agreement, had suggested a heft penalty of Rs. 50 crore per service area for such violations of the licence rules.
The "sale/provisioning of 3G services through the network of other operators using intra-circle roaming facility leads not only to licence violations but also results in undue enrichment of these mobile phone companies who are collecting revenue from 3G customers without specific authorisation,” adds the panel in its note.
The DoT had issued a show cause notice to Airtel last year asking the operator to end 3G roaming services outside licenced zones. The operator, however, challenged the notice in the Delhi High Court. Airtel contended DoT notice contradicted the interim orders passed by the telecom tribunal, Telecom Disputes Settlement & Appellate Tribunal (TDSAT).
Kapil Sibal, however, says the verdict from the tribunal could not be considered as victory for operators.
"For anyone to say they were orally assured, that in itself is suspect. If mature operators have bid for 3G spectrum on such assurances, then they should not be in business. I have seen the replies to queries where operators say we allowed them to offer this facility - you can interpret those replies in any way you want to. How will an entity be allowed to operate in an area in which it doesn't have a licence and even acquire customers from there? Whether it is right or wrong, it is not government against operator - it's what we believe our decision meant," Sibal said.
If implemented, a number of Airtel customers in the country will bear the brunt of the DoT directives, and will be compelled to port out to a different network. Airtel is the largest mobile operator in the country and has about 21 percent of the market share.
A Times of India report says the DoT will soon issue similar notices to Vodafone and Idea Cellular. The report further adds Union telecom minister Kapil Sibal has already given his nod to the move to penalise Airtel and direct the operator to stop offering 3G services outside its licenced circles.
It's not the first time the DoT has attempted to end the 3G roaming pact between the telecom operators. Recently, the telecom department panel recommended immediate stoppage to the arrangement, describing such pacts as “illegal” and “violate licence rules”.
The panel, formed to review 3G roaming agreement, had suggested a heft penalty of Rs. 50 crore per service area for such violations of the licence rules.
The "sale/provisioning of 3G services through the network of other operators using intra-circle roaming facility leads not only to licence violations but also results in undue enrichment of these mobile phone companies who are collecting revenue from 3G customers without specific authorisation,” adds the panel in its note.
The DoT had issued a show cause notice to Airtel last year asking the operator to end 3G roaming services outside licenced zones. The operator, however, challenged the notice in the Delhi High Court. Airtel contended DoT notice contradicted the interim orders passed by the telecom tribunal, Telecom Disputes Settlement & Appellate Tribunal (TDSAT).
Kapil Sibal, however, says the verdict from the tribunal could not be considered as victory for operators.
"For anyone to say they were orally assured, that in itself is suspect. If mature operators have bid for 3G spectrum on such assurances, then they should not be in business. I have seen the replies to queries where operators say we allowed them to offer this facility - you can interpret those replies in any way you want to. How will an entity be allowed to operate in an area in which it doesn't have a licence and even acquire customers from there? Whether it is right or wrong, it is not government against operator - it's what we believe our decision meant," Sibal said.
If implemented, a number of Airtel customers in the country will bear the brunt of the DoT directives, and will be compelled to port out to a different network. Airtel is the largest mobile operator in the country and has about 21 percent of the market share.
