The Department of Telecom has sought more time to decide on whether or not to extend licences of incumbent players, including Airtel and Vodafone, for another 10 years. The Supreme Court had directed the Department to take a view by March 7.
Some of the licences issued to Airtel, Vodafone and Loop Mobile are set to expire in 2014.
Existing norms
Under the existing licence conditions, the DoT can extend the time period for another 10 years. However, the Department had asked these operators to give up the spectrum allocated 20 years ago and buy it back through an auction.
The operators challenged this decision in the court on grounds that the current rules permit them to retain the licence and spectrum for another 10 years. Vodafone had written to the DoT seeking extension of its licences and the rights to continue to use the 900 MHz spectrum band. However, the DoT did not reply to this letter forcing the operator to file an appeal in the court.
According to senior DoT officials, the telecom companies may not be allowed to retain the licence beyond 2014.
“The DoT has already taken a view that 900 MHz has to be refarmed. In addition, the existing licence conditions state that the 10-year extension is at the discretion of the DoT. We will take a legal view before replying to the operator’s application,” said a DoT officer.
Fiat to operators
If the DoT gives an adverse ruling then the operators are likely to go back to the court. While directing the DoT to take a decision by March 7, the court had also told the operators that they can file an appeal if they think that the DoT decision is against their interest.
Earlier, Vodafone India CEO Marten Pieters had told Business Line that the company was willing to negotiate with the DoT as long as the operator was allowed to continue services under reasonable terms.