Telecom Lead India: Around 25 crore mobile subscribers of Sistema Shyam Teleservices (MTS), Telenor controlled Uninor, Videocon and Tata Teleservices face uncertain future due to Supreme Court’s order on Monday.
The Apex Court said unsuccessful bidders and telecom operators that kept out of the first round of fresh auctions for 2G spectrum in November 2012 should not be allowed to provide services from January 18.
21 licenses of Sistema Shyam Teleservices (MTS), 16 permits of Uninor, 15 of Videocon and 3 CDMA permits of Tata Teleservices will have option to migrate to other operators using mobile number portability.
MTS India said it would take a decision on February 22 to choose the circles when the second round of auction commences, on March 11.
Telenor is in the process of transferring the business of Uninor in six circles to new entity Telewings Communications, which recently won spectrum.
According to agency reports, the apex court asked the Government to take a position on the issue and said the telecom companies that continued operations after the February 2, 2012 verdict will have to make payment based on the reserve price fixed for the fresh auction.
“You (Department of Telecommunication) have to take a position on those who have been unsuccessful in the auction conducted on November 12 and 13, 2012. They cannot be allowed to operate in the events when there are bidders who have been successful. Those who did not go for the bid are also not entitled to continue,” said the Bench of Justices GS Singhvi and KS Radhakrishnan, while reserving its order on the issue.
According to the bench, whatever spectrum was released as a result of the quashing of licences must be put on auction. It is only concerned with the 1,800 MHz and 800 MHz bands and not with 900 MHz.
