The Department of Telecom has issued show cause notice to Etisalat DB for cancelling its licences in Delhi and Mumbai for failing to meet roll out obligation.
The move follows a recommendation by the telecom regulator to cancel the licences of all operators who had not fulfilled the roll out norms.
TRAI had suggested cancellation of nearly 70 licences. Show cause notice to other operators is being issued according to DoT sources.
The operators will be given 60 days time to reply to the show cause after which the DoT will take a final decision.
TRAI had suggested that the spectrum freed after cancelling the licence should be auctioned.
Loop Telecom, one of the new operators who is being investigated as part of the 2G scam, on Wednesday had told the Supreme Court that it was willing to surrender its spectrum for auction.