Uninor, others pay penalty for delayed 2G rollout

NEW DELHI, INDIA: Mobile service providers Uninor, Etisalat DB and Sistema-Shyam Teleservices Limited Wednesday said they have paid penalties to the Department of Telecommunications (DoT) for delayed and inadequate 2G rollouts, but under protest.

Earlier this month, the government had issued showcause notices to these firms and had given them 15 days to respond.

"Etisalat DB has received communication from the DoT for imposition of liquidated damages towards roll-out obligation for the first year in respect of four telecom circles aggregating to Rs.9.9 crore. Etisalat DB has made payments for Rs.9.9 crore under protest," the company said in a statement.

In a separate statement, Uninor, a joint venture between India's Unitech and Norway's Telenor, said the company has deposited the penalty as claimed by DoT but under protest.

According to the company, various factors - including last minute pre-launch testing, led to the delay which could not be controlled by the company.

"Various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll-out and were beyond our control," the company said.

The company, however, did not disclose the amount paid to DoT as penalty.

"We have requested the DoT to consider these in its assessment. As a serious long term operator with considerable presence in India, we intend to continue delivering the benefits of competition to customers in the country," the statement added.

Sistema-Shyam Teleservices Limited said the company has paid Rs.11 crore for imposition of liquidated damages towards rollout obligations to the DoT.