Telecom Lead India: 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.
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.
READ Baburajan K’s blog on today’s order HERE
“The telecom companies which have been unsuccessful in the bidding and those after the cancellation of the licenses 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 licenses by February 2, 2012 judgement will have to pay the reserved price fixed for the licenses 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 licenses 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.
In the November 2012 auction, five telecom operators — 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 upcoming auction 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.