DoT asks Trai to look at option of licence renewal sans auction

Bharti Airtel too has done the same for Delhi and Kolkata while Loop Mobile is seeking extension of its Mumbai licence. These companies claim that the National Telecom Policy of 1999 provided for the extension and continuity of licences beyond the 20-year period for which the government then gave them licences. Since the licenses for the 22 national circles were given on different dates with gaps of often more than a year,the renewal dates vary. In the case of Vodafone three licences come up for renewal in November 2014. The rules say companies must apply for their renewal,a year ahead.

While Vodafone had filed applications for extension of licences for the three metro circles with the government in December 2012,it has been rejected. Vodafone has said this is unfair and is constrained to take the legal recourse by challenging the arbitrary rejection of its extension applications as this matter can potentially cause grave inconvenience to millions of customers in these 3 circles.

Referring the issues at this juncture to the Trai opens up the possibility that the government may be considering an out of court settlement with the companies. All of them operate on the 900 Mhz frequency in each circle while the government has plans to refarm it at a higher price. A plethora of issues in the sector is being fought in court,which has hurt investments.

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