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TDSAT says no stopping services under 3G roaming pacts for now

Source : BUSINESS_STANDARD
Last Updated: Sun, Dec 25, 2011 00:20 hrs
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In a relief to three leading telcos, telecom tribunal, TDSAT, on Saturday directed the department of telecommunications (DoT) not to take any "coercive action" against Bharti Airtel, Vodafone and Idea Cellular till the next hearing on the DoT order to stop 3G mobile services through roaming agreements.

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The TDSAT, at a special hearing (held on a Saturday; the tribunal is closed for the winter break from Monday), asked the three operators to submit the 3G roaming agreements signed between them. The next hearing is expected to take place on January 3. DoT has to file its reply before the TDSAT by next Saturday.

"Till the next hearing, the respondent (DoT) would not take any coercive actions against these operators to enforce the order of December 23," a TDSAT bench headed by its chairperson, Justice S B Sinha, said. An agency report said the TDSAT had stayed the DoT decision till January 3. DoT, in a notice sent last evening, had directed Bharti, Vodafone and Idea to stop 3G services immediately in circles where they did not hold spectrum. However, no penalty has yet been imposed on them. But, DoT had asked operators to comply with the directive within 24 hours.

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The operators moved the TDSAT yesterday against the DoT directive. A senior executive of one of the affected companies said, "It's amazing how the DoT gave us the order on Friday, knowing fully well the TDSAT would go into a recess till January. And, we would have had no option but to stop the 3G services based on roaming agreements, affecting many subscribers."

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Through the roaming agreements, Airtel, Vodafone and Idea offer services in circles where they don't hold 3G spectrum. While Vodafone has spectrum in nine circles, it offers services in 20 circles. Similarly, Airtel has 3G spectrum in 13 circles, but offers services in 20. Idea Cellular has spectrum in 11 circles, but offers services in 19. The number of circles where 3G spectrum was auctioned last year is 22. There are about 10-15 million 3G subscribers in the country, of which only 25 per cent are active. All the three operators in separate statements yesterday had criticised the DoT decision.

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Bharti had said the decision would hit investment in the sector and dent the government's credibility. "We are shocked at the arbitrary decision. It is a retrograde step and would adversely impact the proliferation of broadband penetration, depriving millions in rural and urban India of affordable and quality telecom services," the statement said.

Terming the decision retrograde, Vodafone said it would affect millions of customers. The 3G roaming agreements that Vodafone entered into with other operators were in complete compliance with all government regulations and the issue was specifically clarified by the DoT before the 3G spectrum auction was held, it added. Idea Cellular said, "The agreement between operators is in accordance to the existing licence conditions and explicit written clarifications received from the DoT before the auction."

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