Date:09/02/2007 URL: http://www.thehindubusinessline.com/2007/02/09/stories/2007020905500100.htm

Back Rs 400-cr fine to be slapped on 7 telecom operators

Thomas K. Thomas

Failure to fulfil rollout obligations as per licence norms

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New Delhi Feb. 8 The Department of Telecom is all set to impose a penalty of Rs 400 crore on seven telecom operators for not fulfilling the roll out obligations as per their licence conditions.

The operators in the line of fire are Bharti Airtel, Tata Teleservices, Dishnet Wireless, Hutchison Essar, Reliance Communications, HFCL Infotel and Shyam Telelink.

Of these, Reliance Communication has to pay the highest penalty of Rs 147 crore followed by Tata Teleservices with Rs 140 crore.

"The operators are required to cover 10 per cent of total number of districts in an area of operations within one year from the effective date of licence and they should ensure that at least 90 per cent of these districts, including inside buildings, is given coverage. None of these companies have submitted the required certificate from the Telecom Engineering Centre (TEC) within the one-year period," said a DoT official. The issue was discussed in the recent meeting of the Telecom Commission.

The operators said that the delay in providing services has been due to the delay in allocation of the spectrum and clearances from the various Government agencies. Operators added that Government should do away with the roll out obligation in view of the intense competition, which will drive telcos to reach out to more areas.

DoT officials, however, pointed out that the licence agreement signed by the operators clearly says that delays in getting permission or clearances shall not be taken as a reason for non-fulfilment of the roll out obligations.