US chipmaker has paid up Rs 410 crore to the Department of Telecom in a bid to get its broadband licence.
The money has been paid on behalf of Qualcomm's joint venture partner Tulip Telecom, after the DoT took a stand that it could not issue the licence until past dues were settled.
Tulip Telecom has a minority stake in Qualcomm's broadband venture. Despite Tulip contesting the dues, Qualcomm paid the amount on March 7 and is still awaiting the licence and spectrum.
Qualcomm had won broadband spectrum in four circles during the auctions held in 2010. The company has already paid close to Rs 5,000 crore for the spectrum but more than 18 months later is still waiting to get the airwaves. The DoT had held back the licences on technicalities, which forced the company to appeal before the Telecom Dispute Settlement Appellate Tribunal.
The Tribunal has ordered the DoT to issue the licences within one week after the dues are settled. The one week deadline expires this Wednesday.
The Tribunal has also asked Qualcomm to apply for spectrum after getting the licence in accordance with the guidelines issued at the time of conducting the auction. It also told the DoT not to adopt any adversarial approach and allocate spectrum to the company expeditiously.
The DoT had initially refused to allocate spectrum and licence to the company on grounds that the subsidiary companies that applied for licences were not introduced by Qualcomm Inc before the stipulated 90-day period after the auction. It's not clear how the Department will now resolve this issue for issuing the licence.
The delay has throttled Qualcomm‘s plans to rope in a strategic investor for its broadband venture. While the company has sold 26 per cent stake to GTL and Tulip Telecom, it ultimately wanted to exit the venture. But without the licences, it can neither conclude an investment deal nor start roll out on its own.