4, జనవరి 2012, బుధవారం

3G Battle


The Airtel, Vodafone and Idea came to an agreement called “intra circle roaming agreement” and started providing 3G services in the Circles where they did not secure 3G spectrum, by sharing the 3G spectrum of their partner in the agreement who is having the 3G spectrum in the concerned circle.This means they purchased   3G spectrum   only in some circles, but they are providing 3G services in all circles. This is nothing but cheating the Government   since they should purchase the 3G spectrum for each and every circle where they are providing 3G services. They thus avoided a payment of   more than Rs 20,000 crores to the Government. This is 3G spectrum scam. It is to be noted that the BSNL   was compelled by the Government to purchase the 3G spectrum for all the circles where it has been providing 3G services.

Thus while BSNL paid for all circles where it is providing 3G services, these private operators are providing the 3G services in several circles without paying for the 3G spectrum. The TRAI, DoT and the Law Ministry held these agreements as illegal. DoT wanted to issue notices to these private operators for terminating these illegal agreements. Then these private operators jointly wrote a letter to the Prime Minister Sri Manmohan Singh threatening that in case their agreements are to be cancelled, the Government should refund the amount paid by them for the circles where they purchased the 3G spectrum, along with interest. They also demanded that the capital invested by them on 3G network should be compensated. They met the Prime Minister Sri Manmohan Singh on 30/11/2011 demanding that their 3G intra circle roaming agreements should be allowed.

The Economic Times dated 10/12/2011 reported that the Telecom Department changed its view after the meeting between the Prime Minister and the private Telecom Operators and now plans to allow these 3G roaming agreements of the private operators by collecting some additional amount from them, as a share in their revenue. As per the Economic Times, the additional amount thus to be collected from them as an additional share in their revenue would be Rs 700 crore. The amount the Private Operators have to pay to the Government for purchasing the 3G spectrum in the circles where they are providing 3G services without purchasing 3G spectrum is about Rs 20,000 crores at a time.

Subsequently due to the serious illegality involved , the DoT decided to issued notice to them on 23-12-2011 to terminate these illegal intra circle roaming agreements with in 24 hours. But the private operators Airtel, Vodafone, Idea, Aircel and Tata Teleservices (Aircel and Tata Teleservices also signed the illegal agreement although not yet operated it) filed a case in TD SAT (Telecom Dispute Settlement Authority) on the same day and got stay until 3-1-2012.

The DoT submitted its response on the petition of the private operators on 2-1-2012 and told the TD SAT that the private operators have not come to the TD SAT with clean hands and suppressed the facts. It told that the 3G roaming agreements were against the conditions of the licence and notice inviting applications(NIA) for 3G auctions in 2010.

Now the BSNL also filed a case in TD SAT for impleading in it since it is facing loss due to the 3G roaming agreements of the private operators. Meanwhile the DoT questioned the authority of the TD SAT to entertain the petition of the private operators. It cited a recent judgment of the Supreme Court according to which the TD SAT could not entertain petitions on altering the terms of telecom licences. DoT told TD SAT that it would file a separate application in this regard with in a day. The Private Operators have to reply to it by 9-1-2012 on which date the TD SAT hears the case again. TD SAT told that the issue of impleading by BSNL will be decided after deciding the issue of jurisdiction of TD SAT to entertain the petition of the private operators. It is also to be noted that the JAC of BSNL unions went on one day strike on 15-12-2011 on BSNL survival related issues in which one of the demand was to cancel the illegal intra circle roaming agreements of the private operators.

If the outcome of the case in the TD SAT is against the private operators, their intracircle roaqming agreements have to be cancelled. Even then, what about the period during which they have operated as per these agreements? But the Government is going in the direction of making these illegal agreements as legal in future, by bringing a new telecom policy allowing sharing of the spectrum.

If such a policy comes into effect, these private operators who paid less for the 3G spectrum will be allowed to provide 3G services throughout the country by sharing the spectrum. On the other hand, the BSNL, which already paid for the 3G spectrum for all the circles will be put to loss. Therefore the present legal battle going on between DoT/BSNL on one side and the private operators on the other side is for the present period only and the DoT and Government is going to bless the private operators by allowing spectrum sharing in the new telecom policy to be finalized and announced in a few months.

Such sharing/trading of spectrum is nothing but allowing the precious spectrum to be hoarded and traded by the private operators and it is against the expansion of the telecom services. Instead, the spectrum should be distributed by the Goveernment as per requirement to the telecom companies by utilising latest technologies like CRT(Cognizant Radio Technology) at market rate and it should be allotted to BSNL and MTNL(PSUs) freely in view of the enormous social obligations being carried out by them.

The battle for the spectrum(2G/3G/4G) should be carried forward by the telecom trade unions of PSUs(BSNL/MTNL) so that it is allotted freely to the PSUs and at market rate to private operators without allowing sharing and trading in spectrum.

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