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This is an archive article published on February 22, 2011
ASG wants 12 licences of Idea,Spice cancelled
With fresh evidence on telecom ministrys failure to check companies flouting guidelines after obtaining Unified Access Licences.
With fresh evidence on telecom ministrys failure to check companies flouting guidelines after obtaining Unified Access Licences,Additional Solicitor General ASGof India,Amarjit Singh Chandhiok has recommended that 12 licences of Idea Cellular and Spice Telecom be terminated as the two merged within months after obtaining the licences and the former held 41.09 per cent equity of the latter.
Chandhioks opinion dated February 15 came in response to queries by the ministry. In the report,the ASG also rebuked the ministry saying that it amended the licences of Idea in 10 service areas,which could be termed as waiver of any violation.
Informing the ministry about the merger through a letter dated May 12,2009,Idea said it was holding 41.09 per cent equity in Spice Communication w.e.f. October 17,2008. While Idea obtained new UAS licences in Karnataka,Punjab service areas on January 25,2008,it held Cellular Mobile Telephone Service CMTS licences in Maharashtra,Delhi,Andhra Pradesh and Haryana from earlier dates.
Spice Communications obtained new UAS licences in Maharashtra,Delhi,AP and Haryana on January 25,2008,and its CMTS licence migrated to UAS in Karnataka and Punjab from an earlier date this lead to the overlapping of licences between the two companies,over which the ASGs opinion was sought.
Condition 17 of the Guidelines For Intra service Area Merger of Cellular Mobile Telephone Service says that any permission for the merger of licences shall be accorded only after three years of the grant of licences.
Citing the above provision,the DoT,in letter dated January 7 and 18,2010 to Idea Cellular,and January 7 to Spice Communication,informed the companies that as per the Guidelines such merger of licences cannot be permitted.
The DoT,however,did not take any step and Idea Cellular and participated in the 3G bidding,receiving Letters of Intent in 11 areas,including four where there was overlapping of licences between the two companies.
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