The Hindu Business Line : Idea, Spice resent DoT delay, say ‘we applied first’

New Delhi, Dec 21 Intensifying the telecom battle further, Idea Cellular and Spice Telecom have cautioned the Government against issuing letters of intent or spectrum to any of the companies which had applied for new licences after them.

“We caution the DoT that no GSM initial spectrum allocation pertaining to applications subsequent to ours of June 2006 for the said 9 service areas can be entertained until our applications , along with associated initial spectrum , are first disposed,” said a letter from Idea Cellular to DoT.

While Idea had put in its applications for nine new licences on June 26, 2006, B K Modi promoted Spice Telecom had sought licence for 20 circles on August 31, 2006. The letters come in the wake of the DoT’s decision to give pan Indian GSM licence to Reliance Communication. DoT has also initiated the process to give LoIs to new companies which had applied before September 25, 2007. While there is a dispute on RCom’s date of application, most of the 46 new companies in line for telecom licences had applied in 2007.

Idea and Spice have told DoT that letters of intent should be immediately issued first to them since DoT’s existing norms stipulate that LoIs should be issued within 30 days of making the application. “As such, the DoT was required to issue Letters of Intent by 25 July 2006. In any event, it is now over 500 days from the date of applications. Meanwhile, we have sent 8 letters of reminder, apart from 7 personal meetings. Please issue the 9 Letters of Intent forthwith.”

In a similar letter, Spice Telecom said, “We wish to point out that your continued delay in issuing the LoI for the applied circles to our company despite innumerable meetings and follow ups and various reminders has caused hardship and irreparable loss to our company.”

However, some of the new applicants including HFCL and Shyam have also sent legal notices to the Government to issue LoIs to the new players. Letter of intent is the first step towards taking a licence and spectrum. Once DoT issues LoI then the operators have to pay up the entry fee and other charges to convert it into an operational licence. Since recent communication from DoT indicate that spectrum will be released based on the date of paying the entry fee, all the new players are clamouring to be the among the first to get an LoI.

Communications Ministry sources said that since the telecom tribunal had allowed DoT to start issuing spectrum only on December 12, the applications were being processed and letters would be issued soon. However, DoT sources admitted that there may be difference of opinion within the Government on how to proceed with over 575 new applications for telecom licences given the objections raised by existing players to the spectrum allocation policy. Meanwhile, the appeal filed by the GSM operators in the High Court seeking a stay on recent telecom policy decisions on allowing dual technology to Reliance Communication and enhanced subscriber linked spectrum allocation is expected to come up for hearing on Monday. Both Idea and Spice are part of this appeal filed by Cellular Operators Association of India on the grounds that without a stay DoT may start issuing spectrum and LoIs to new players.