US chipmaker Qualcomm has sought the Communication and IT Minister, Mr Kapil Sibal's intervention for getting broadband spectrum.
The company, which had won spectrum in the auctions held in 2010, is still awaiting allocation by the Department of Telecom. All other companies who had won spectrum have already been given spectrum.
Legal memo
Qualcom has submitted a legal memo to the Telecom Minister detailing out all facts of its case, according to top sources in the Ministry of Communications.
This comes after a meeting between Qualcomm Inc's CEO, Mr Paul Jacobs, and Mr Sibal on April 13. According to the communication sent by the chipmaker to the Minister, the company was assured spectrum within two weeks of this meeting.
The delay in getting spectrum is affecting the company's business plans. Qualcomm had earlier said that it would partner with one of the existing players by end of 2011 but it could not execute the plan due to concerns raised by the DoT.
The company then approached the Telecom Dispute Settlement Appellate Tribunal (TDSAT), which on February 24, 2012 ordered the DoT to give licence and allocate spectrum without adopting an adversarial approach.
According to sources in DoT, Qualcomm's spectrum application has been held up because the Government has to take a view on whether or not to impose any penalty on Qualcomm.
According to the DoT, Qualcomm had not applied within the prescribed time frame after the auction. This has been contested by the company on grounds that they had applied for ISP licence on 9 September 2010, well within the three months window period. “The company has written to Mr Sibal saying that there is no ground for penalty and that they should be given an opportunity to present their case before a decision is made. We have to follow the process for such issues,” said a DoT official when asked why it was taking time to allot spectrum to the company.
Appeal in TDSAT
Qualcomm, in its letter to the Minister, has also stated that it could challenge any adverse decision by DoT through an appeal in TDSAT.
The company has already paid over a billion dollars to the Government for buying the spectrum. In addition, it has paid Rs 410 crore dues on behalf of its joint venture partner Tulip.