License clearance: Idea seeks TRAI intervention

NEW DELHI: Idea Cellular has sought the Telecom Regulatory Authority of India’s intervention in the Department of Telecom’s (DoT) delay in awarding the operating license for the remaining nine circles.

Sanjeev Aga, managing director Idea Cellular in a letter to Nripendra Misra chairman of TRAI, has asked the regulator’s recommendation for sanction of pending license applications of Idea on priority. It has also asked to provide start-up spectrum against new licenses.

The letter stated that in terms of Universal Access Service (UAS) license, “the UASL policy of 11.11.03 gave the first chance to fixed service providers, who did not hold a cellular license, to migrate and become the fifth and the sixth mobile operator. But the existing mobile operator like Idea could apply only on later slots.”

The operator in its letter pointed out that the Tata Group had large holdings both in Idea and in Tata Tele-Services Limited, which hitherto were non-competing licenses. It said that Tata availed the migration concession and the cross-holding concession and got the UAS license across India, before Idea was given a chance.

“Idea was an existing operator and had a prior claim, but was prevented from applying for new licenses. Similar was with the application for the Mumbai UAS license, where the Birla Group gave the necessary undertakings regarding cross-holdings, the Tata group did not. However, government failed to take any initiative and did not progress the Idea application. Only after Tata group exited on (20.06.2006), government started processing the applications from Idea,” the letter said.

The letter stated that the Tata group was issued UAS licenses in several circles in 2004, when the operator was not an existing licensee. The matter was reported and was investigated by TRAI. Subsequently, the report was submitted to the DoT.

The letter added, “Idea not to be restricted in expanding in to new service areas because of the impermissible holdings of promoters or substantial equity holders.”

However, no action was taken by DoT and Idea applications were accepted only after Tata exited Idea on June 20, 2006. The operator claims that the Mumbai license was issued without spectrum.

Seeking the intervention of the telecom authority, the operator has requested to take action before the new TRAI Consultation paper is out.

“We will not await the consequences of the consultation paper as the case of Idea relates to anomalies and inequalities created by past policies,” Aga pointed out.

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