Indian operators ordered to stop 3G roaming

News Wireless India 24 DEC 2012
Indian operators ordered to stop 3G roaming
India's Department of Telecom (DoT) has asked Vodafone India and Idea Cellular to stop offering 3G voice and data services outside their licensed zones through roaming pacts, reports The Economic Times. The notices served to the operators said they risk a penalty of INR 500 million in each circle where they offer data services on 3G networks through roaming pacts. This means Vodafone India and Idea Cellular face the prospect of penalties up to INR 4.5 billion and INR 5.5 billion respectively. The DoT has already repeatedly warned operators that the roaming pacts are in violation of their spectrum licence terms. 

Tata Teleservices and Aircel had also forged 3G roaming agreements, but called off the alliance after the DoT began investigating these arrangements. However the DoT also issued notices to these two companies for violating licence norms, executives with the mobile companies confirmed. All the operators are expected to challenge the DoT's notice in court in the week starting 31 December. The companies have 60 days to respond, and the notice adds that the government may cancel their 3G permits if the government is not satisfied with the replies furnished. 

The DoT in its latest notice to Vodafone India, Idea Cellular, Aircel and Tata Teleservices issued has said that the split opinion of the TDSAT only confirms the validity of the department's letter to mobile phone companies in December 2011 directing that roaming pacts to be scrapped. Post the tribunal's split verdict, the additional solicitor general of India, in his opinion had said that fresh show-cause notices could be issued for imposition of penalty, including cancellation of licence. Further, revenue generated through unfair means can be recovered through separate showcause notices, the opinion added. Vodafone India and Tata Teleservices executives confirmed their respective companies had received the show-cause notices. The Idea Cellular spokesperson could not be reached for a comment.

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