Tata Tele?s Delhi spectrum hopes hit DoT roadblock

Tata Teleservices’ (TTSL) chances of getting 4.4 megahertz of start-up spectrum in the Delhi metro circle at 2001 prices has hit a roadblock. The department of telecom (DoT) has sought the Attorney General’s view on whether TTSL should be granted spectrum in Delhi, considering the fact that spectrum has been delinked from licences and an operator can buy it only through the auction process.

The DoT has also sought the AG’s view because in February the Telecom Disputes Settlement and Appellate Tribunal had ruled that TTSL and Reliance Communications should not be granted any additional spectrum as their dual technology licences are “under a cloud”, referring to the fact that dual tech policy is sub judice in the Supreme Court.

While the Cabinet in November 2012 allowed the allotment of spectrum to TTSL in Delhi ?after completion of the auction (February 2014) process, subject to availability? the entire 21 MHz of spectrum in the 1,800-Mhz band put up for auction in this circle has been sold.

The empowered group of ministers on telecom, headed by finance minister P Chidambaram, in its November 2012 meeting had also stated that the operator should be allotted the initial 4.4 MHz spectrum for the Delhi service area at 2001 prices as the company has already paid the requisite fee. Tatas had paid for a pan-India GSM permit in 2008, but were not given airwaves for Delhi at that time as the telecom department said it had exhausted 2G airwaves in the city.

The EGoM had also specified that Tata Teleservices would not need to pay anything extra as the spectrum was due to it prior to a new telecom policy being framed.

TDSAT, in its February 1, ruling denied TTSL any additional spectrum as its dual technology licence approvals is sub-judice in the Supreme Court.

“We have no hesitation in holding that the approval for dual technology granted in their favour and the consequent amendments in their licences have come under cloud and it will be highly unsafe to make those licences the basis for allocation of additional spectrum, which is scarce natural resource and an invaluable national asset,” the TDSAT judgment said.

In its 2011 ruling, TDSAT asked DoT to allot 2G start-up spectrum of 4.4 MHz to TTSL.

Under the earlier licensing regime ? Unified Access Services Licences ? telecom companies were allocated 4.4 Mhz of GSM spectrum to start mobile services on payment of Rs 1,651 crore as licence fee. Tata Teleservices has so far been unsuccessful in bagging the start-up spectrum in Delhi, which prevented the telecom firm from grabbing any foothold in the high revenue metro circle.