10, ఏప్రిల్ 2012, మంగళవారం

DoT moved Cabinet Note on Presidential Reference on the Supreme Court’s Judgment on Cancellation of 2 G Licenses


The DoT has moved a cabinet note on the issue of Presidential Reference on the Supreme Court’s judgment cancelling 122 telecom 2G licenses. As per the reports in the news papers, the cabinet note questions the Supreme Court’s observation against the first-come-first-served policy for awarding 2G licenses. This note prepared for the approval of the Cabinet after which the Presidential Reference would be made to the Supreme Court based on it, raised the following issues to be clarified by the Supreme Court:

a)      Whether auction is the only method that has to be adopted by the Government for allotting natural resources to the private parties. It wants the Supreme Court to clarify whether auction is mandatory for allocation of any natural resource to the private parties.

b)      Whether all the 2G licenses  which were  issued from 1994 to 2007 without auction be treated as legal or illegal?

c)       Whether all such existing operators who were given 2G licenses prior to 2008 and not cancelled by the Supreme Court judgment (Supreme Court cancelled the licenses issued in 2008 only) should be charged at the rate to be decided through the spectrum auction to be held now as per the direction of the Supreme Court’s judgment?

d)      Whether the dual technology licenses (For example Reliance Communications has CDMA spectrum only initially and did not take GSM spectrum. It provided 2G services using CDMA spectrum. But later on during Raja’s period it was given GSM spectrum without auction. Like this some other Companies also were given this dual technology license) are legal or illegal?

e)      Whether the 3G license given to the Companies whose 2G licenses were cancelled by Supreme Court, should be given back to the Government?

f)       Whether the cancelled licensees should be given first preference in the spectrum auction to be held in near future?

g)       What can be the ceiling on the total quantity of spectrum that can be held by a telecom company , for the purpose of avoiding dominance and monopoly in the market.

h)      Whether auction should be held in case of several spectrum bands (for example the CDMA 800 MHz band) where there will be no competition.

This Cabinet Note made by the DoT with the above points will be considered by other Departments like law, finance etc before submission for the approval of the Cabinet. After the approval of the Cabinet, the Presidential Reference will be made to the Supreme Court on that basis. There is no mandate for the Supreme Court for considering such a reference. The Supreme Court has the option not to give its opinion.
Thus it is clear from these questions that  most of the 2G  licenses which were allocated by the Goveernment are allocated without auction on the basis of first come first served policy or some other policy violating the constitutional norms and now the Government, by pointing out to the Supreme Court through its proposed Presidential Reference wants to create a picture before the Supreme Court that if the 2G licenses are to be cancelled since they are allocated without auction, in such case, not only the 122 licenses canceelled by the Supreme Court, but all the licenses given prior to 2008 without auction have to be cancelled and it will lead to chaos in the telecom services sector and therefore the Government should be left to do what ever it likes, in the name of the executive having the powers to decide the policy.

But the Government, even thou it is the Executive of the Country having the aucthority to decide the policy, cannot decide it as per its whims and fancies, and it has to be decided by following the norms laid down in the constitution of India. It cannot go on making policies violating the constitutional provisions and then say cancelling such policies or the results of such policies will trouble the investors. Let us wait and watch what the Government will finally decide? Whether it will finally decide for the Presidential Reference or not?

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