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Unsuccessful bidders in fresh 2G auction to cease operation:SC
Last Updated : 15 Feb 2013 01:51:58 PM IST
supreme court
2G: SC says Telecom firms with revoked licences to stop operations

 

The Supreme Court on Friday held that telecom companies which were unsuccessful in availing fresh 2G spectrum and those which did not participate in the auction process will cease to operate "forthwith".



The court also said that telecom companies which continued operation after cancellation of licences will pay fee as per reserved price fixed for fresh auction in Nov 2012.
   

However, telecom companies which were successful in the fresh auction held on November 12 and 14, 2012 will be asked to start their services in the respective circles immediately,the court ruled.

 "The telecom companies which have been unsuccessful in the bidding and those after the cancellation of the licences did not participate in the fresh auction are directed to cease from continuing from operation forthwith and the successful bidders will immediately start in their respective circles,"the court said.

 A bench comprising justices G S Singhvi and K S Radhakrishnan directed that those telecom companies which were allowed to continue operation after scrapping of their licences by February 2, 2012 judgement will have to pay the reserved price fixed for the licences in the first round of the auction held in November 2012.

 The apex court by its interim orders had extended the deadline for them to continue with the operation. The bench clarified that the apex court's Feb 2, 2012 judgement will not be applicable on telecom companies holding the spectrum with 900 MHz band.
    

"The February 2, 2012 order will have no bearing on litigation relating to 900 MHz band," the bench said, adding that it (900 MHz band spectrum) was not the subject matter before it. The bench also directed to immediately put on fresh auction entire 2G spectrum for the licences cancelled by it.

The apex court had on February 2, last year cancelled 122 licences for 2G spectrum and had directed the Department of Telecommunication (DoT) to hold fresh auction for them within four months. The deadline was extended by its interim orders
from time to time.

 As per the apex court order, 21 licences of Sistema Shyam Teleservices (MTS), 16 permits of Telenor controlled Uninor,15 of Videocon and 3 CDMA permits of Tata Teleservices were to stand cancelled from January 18, affecting around 25 crore
subscribers in the country.

  Telenor is in the process of transferring the business of Uninor in 6 circles to new entity Telewings Communications,which recently won spectrum in fresh auction.

In the November 2012 auction, five telecom operators --Bharti Airtel, Vodafone, Telenor-promoted Telewings, Videocon and Idea Cellular -- had applied for participating in the auctions.

Sistema Shyam Teleservices had not participated while Videocon won spectrum in six circles and Idea won spectrum in eight circles and Telenor got spectrum in six circles. Earlier, the Centre had asked the court to consider allowing telecom operators, whose 2G licences were cancelled last year, to continue to operate after the January 18 deadline with a condition that they "will be liable to pay" for the spectrum as per the proposed price of the upcomingauction on March 11.
   

The DoT had stated its stand in an affidavit which assumes importance as the court has permitted the telecom operators to continue to operate till January 18.The DoT had asked the apex court to consider allowing it to grant "temporary licences" to such operators till the completion of the fresh bidding process.

The court by its various interim orders had allowed the telecom companies whose licences were quashed by the verdict to continue with the operation till the fresh auction for 2G spectrum was completed.
 


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