License termination if no service in 3yrs: Raja

NEW DELHI, INDIA: Telecom Minister A Raja said that new telecom operators may have to face license termination and subsequent surrender of spectrum if they fail to start services within the stipulated three-years time.

Raja said that his ministry would keep a vigil on these players and on their plans to start operations (50 per cent in the first year of spectrum allotment).

"The law is (to start operations after getting start-up spectrum) already there. Roll out period is three years. I want to tighten it. Any departure from the law will amount to cancellation of licenses. I am not going to alter the three years. But we will be more vigil," the minister said.

Elaborating further, he said, "We are going to check if within three years, the roll out has started or not. Otherwise, I will terminate the license and get back the spectrum, something that has not happened in the past. It will be implemented strictly, explicit conditions will be inserted in the license conditions."

Raja's assertion has come at a time when he is faced with criticism following the high-value stake-sale of two new telcos -- Unitech Wireless and Swan Telecom -- who are yet to start services.

This had led to the accusations that new telcos have only profit in mind as after getting spectrum, none have started placing orders for equipment to start services.

Raja's concern comes as the new players have not launched their services despite having been given the licenses almost nine months ago and some of them alloted the spectrum as well.

According to the terms and conditions specified in the license, in the first year, they are required to cover at least 10 per cent of each district headquarters in a circle.

Source: PTI