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The Department of Telecommunications has issued a show-cause notice to GSM operator Idea Cellular for alleged violation of Cellular Mobile Telephone Services (CMTS) licence in Delhi service area.
On June 19, DoT has sent a notice to the company directing it to explain with two weeks as why action should not be initiated against it for violation of licence terms and conditions.
The issue dates back to 2007, when the GSM operator had allegedly issued 3,640 mobile phone connections to Limco Sales Corporation (LSC), which in turn rented them out to individuals. Renting of SIM cards were not permitted under CMTS licence.
The GSM operator had also admitted that in the subscriber database, for the same mobile connection, the names of subscribers were changed without change in activation date, as and when the customer acquisition forms in the name of new customers were received.
According to DoT, Idea Cellular’s defence was “satisfactory”. Further, under the agreement, various important rights were passed on to LSC by Idea without having regular checks to ensure its enforcement. The checks were necessary to comply with licence conditions as far as security of the nation was concerned and ensure no loss of government revenue.
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