US chipmaker Qualcomm has shot off a second letter to the Department of Telecom seeking broadband spectrum and licence in the four circles where it had won in the auctions held in 2010.

According to DoT sources, the company in its letter has told the department to expedite the licence as the delay was jeopardising its billion dollar investments.

“Our investment in India of such a large sum was made to facilitate the provision of wireless broadband in India as quickly as possible. It is our understanding that our investment was welcomed, as the Government of India wishes to attract foreign direct investment, like ours, to facilitate the rapid roll-out of broadband as widely as possible throughout India. Now, however, it appears that our investment has been put in jeopardy and on grounds that we find to be baseless,” Qualcomm said in the letter sent out on Monday. Top DoT officials confirmed receipt of the letter and said that they were looking into the issue.

Meanwhile, the Cellular Operators Association of India came out backing Qualcomm's stand. “This sends out a very wrong signal to global investors. The DoT should act as a facilitator to investments from a company which has invested a billion dollars and won spectrum in an open transparent manner. We may write to the DoT soon,” said Mr Rajan Mathews, Director General, COAI.

Independent experts also slammed DoT's stand on the issue saying that the delay was uncalled for. “The DoT is taking cover behind silly technicalities when actually they should be encouraging companies which are investing in rolling out broadband services,” said Mr B.K. Syngal, former Chairman, Videsh Sanchar Nigam Ltd.

Business Line had reported on September 14 that Qualcomm's licences have got stuck with DoT raising questions on its application. The DoT has refused to allocate spectrum and licence to the company on grounds that the subsidiary companies which applied for licences were not introduced by Qualcomm Inc before the stipulated 90-day period after the auction. It has also taken a view that Qualcomm cannot be given four different licences for each of the circles where it had won spectrum.

Four circles

Qualcomm had won broadband spectrum in four circles of Mumbai Delhi, Kerala and Haryana on June 12, 2010. The company then floated four companies by the name of Wireless Broadband Services and approached the DoT for different licences in each circle.

Last week, Qualcomm wrote a letter to the DoT offering a compromise formula in which the company has agreed to take one licence and then merge the other three. But on the issue of nomination, the DoT has not officially communicated its decision to the company yet.

Qualcomm India spokesperson said that auction rules did not have any clause which required Qualcomm Inc to introduce the subsidiary companies first.

“We have been working cooperatively with the DoT staff for over a year now to gain the necessary approval. When we filed our applications, and in our subsequent meetings and conversations with DoT, we were not given any indication that our applications were late or that DoT objected to our nominees,” Qualcomm said in its letter to DoT.

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