The Telecom Disputes Settlement and Appellate Tribunal today directed the Department of Telecom to file a reply within ten days to the challenge raised by telcos over penalties imposed by DoT for their failure to roll-out services within the stipulated period of one year.

A TDSAT Bench, headed by its Chairman Mr Justice S.B. Sinha, while directing the DoT to file its reply within 10 days, also directed the telcos to file their rejoinder within 10 days thereafter.

TDSAT’s direction came over a batch of petitions filed by various telcos challenging the demand for crores of rupees as liquidated damages for their failure to roll-out their obligation within the stipulated period.

TDSAT listed the matter for further hearing on May 2, 2011. DoT has requested to keep the matter sine die as the cases relating to the 2G scam is pending before the Supreme Court.

Earlier, in its interim order, TDSAT had directed the telcos to pay 60 per cent of the liquidity damages demanded by DoT. The telcos had already paid LD charges for some circles before coming to the tribunal challenging the penalty imposed by DoT.

The demand of penalty by DoT was opposed by various telcos, including Uninor, Videocon Telecommunications, Sistema Shyam Teleservices, S Tel, Aircel, Dishnet Wireless and Idea Cellular.

DoT had sent notices to several firms, which got new 2G licences bundled with start-up spectrum, but have not started offering services in various circles.

As per the conditions of the Unified Access Service Licences (UASL), the telcos are required to roll out their networks within a year from the date of allocation of spectrum.

According to the agreement, in case new licensees fail to roll out services within the stipulated period, DoT shall be entitled to recover liquidated damages.

Related Topics