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Thomas K. Thomas

New Delhi, Aug. 9 The Department of Telecom has decided that it was not liable to pay any compensation to operators for delay in allocating spectrum. This comes after Idea Cellular had asked DoT to pay Rs 83 crore as compensation for delay in allocating spectrum in Delhi circle in 2002.

The company on Thursday said that it was facing similar delays in Mumbai and Bihar where it could not launch mobile services despite getting a licence in December 2006.

Idea Cellular said that it was hoping to begin services in Mumbai by July but could not do so since DoT had not allocated radio frequency, the basic raw material for offering mobile services.

Apart from commercial interest, operators are concerned about the rollout obligations stipulated by the Government.

As per the norms, any operator is expected to commence service within one year of getting the licence irrespective of whether it has been given clearances or spectrum. If the operator does not start services within the said period, then DoT can also withdraw the licence.

While in the case of Idea Cellular, DoT has decided against terminating licence, the company may however be asked to pay up penalty for delaying services in Delhi.

More Stories on : Broadband | Telecommunications | Regulatory Bodies & Rulings

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