Supreme Court restrains Airtel on further 3G customers' addition

NEW DELHI, INDIA: Finally, the India's apex court has intervened in the controversial 3G roaming pacts issue, and restrained Bharti Airtel from adding new customers in seven circles where it doesn't purchased spectrum.

The telecom service providers that include Airtel, Vodafone and Idea have entered into alliance within themselves to offer 3G services without actually purchasing airwaves from the government. This was however causing significant loss to national exchequer.

The telecom department has already termed their pacts as illegal and on March 15 imposed penalty of Rs 350 crore, and asked Bharti Airtel to immediately halt 3G services. Despite this, the telco continued and challenged it in the Supreme Court.

The court however asked the government not to take coercive measures and allowed Airtel to continue with existing customers. Reliance, an arch rival, however said that these telcos had violated law.

The pacts between these carriers were illegal and violate the Article 14, 19 and 21 of the Constitution. This also defeats the purpose of auction, said Reliance which had bought 3G airwaves in competitive bidding process.