Rajeev Chandrasekhar's official website - Member of Parliament

 

RAJYASABHA
UNSTARRED QUESTION NO.2693
TO BE ANSWERED ON 26TH AUGUST, 2011
Violation of Rollout Obligation

 

 

 

2693. SHRI RAJEEV CHANDRASEKHAR:

 

Will the Minister of Communications AND INFORMATION TECHNOLOGY be pleased to state:

 

(a) Whether TRAI, in its letter dated 18 November, 2010, had listed 69 licensees against whom action must be taken ranging from penalties to termination of licences for violation of fall out obligations;

 

(b) If SO, the detail s thereof, licensee-wise;

 

(c) The details of DoT officials responsible for issuing such show cause notices on a routine basis and the process adopted after receiving TERIM cell reports, etc.;

 

(d) Whether DoT had refused to take action consistent with TRAI's aforesaid letter and had again referred the matter back to TRAI; and

 

(e) If so, reasons for such difference of opinion between TRAI and DoT?

 

 

 

 

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI MILIND DEORA)

 

 

 

(a)    & (b) Sir, TRAI vide its letters dated 18th November 2010 recommended for cancellation of 38 Unified Access Service (VAS) licenses as per license conditions and to seriously consider the cancellation of another 31 VAS license s after legal examination in view of non-utilization of spectrum and resultant loss of revenue to exchequer, in addition to imposition of Liquidated Damage (LD) on various licensees as per license conditions. The list of 69 such Licensees is enclosed as Annexure,

 

(c)     DoT officials posted in the Access Services (AS) cell along with the officials posted in TERM cells, Wireless Planning and Coordination (WPC) Wing and License Finance (LF) cells examine and compliance of rollout obligations as per license conditions. Examination of the compliance of roll out obligation as per license conditions is a continuous process and following are the major steps in this process:

 

• Information regarding date of allocation of startup spectrum, to each Licensee is obtained from Wireless Planning and Coordination (WPC) wing.

 

• Details of registration by licensees with TERM cells for rollout coverage testing along with each Base Transceiver Station (BTS) detail are obtained from TERM cells as per license conditions.

 

• Based on the information received from TERM Cells, again the details related to Standing Advisory Committee on Frequency Allocation (SACFA) clearance for calculation of average SACFA delay period are obtained from WPC wing with respect to BTSs which are offered as part of coverage testing.

 

• Based on the combined information received from WPC Wing and TERM cells, the delay if any in compliance of rollout obligations is worked out and Liquidated Damages are calculated in AS cell.

 

• The above mentioned complete details are submitted to LF cell of DoT for further examination and vetting.

 

• Based on the vetted data, the demand notices for imposition of LD and show cause notices for termination of licenses as the case may be for individual license are prepared and submitted for approval of Hon'ble Minister of Communications & Information Technology (MoC & IT) through proper channel of submission.

 

• Legal cell of the DoT vets the notices from legal point of view before issue.

 

• After final approval, officials of AS cell of the rank of Under Secretary or above issues the notices to concerned licensees.

 

(d)    to (e) DoT after examination of the recommendations of TRAI as per the UAS License conditions in consultation with Ministry of Law and Justice came to a prima facie conclusion that 8 licenses are liable for cancellation out of 69 licenses mentioned in part (b) above.

 

Since meeting the roll-out obligations is not linked with the number of subscribers in the network or the number of BTSs deployed, as the number of STSs may vary according to the area to be covered in a selected District Head Quarter (DHQ)/town, the Government came to a prima facie conclusion that TRAI recommendations may need modifications. The reference was sent back to TRAI for its reconsideration as per provision of TRAl Act.

 

 

 

 

Annexure

Sl. No. 

 Name Of The Service Area 

 Name Of Licensee

 Category As Per TRAI Recommendation 

 Date Of Issue Of Demand Notices For Imposition Of LD 

 Date Of Issue Of Show Cause Notice For Cancellation Of Licenses 

1

 Gujarat

Aircel Ltd.

B2

 14-12-20 10

31-03-2011

2

 Rajasthan

Aircel Ltd.

C2

28-12-2010

31-03-2011

3

 Bihar

Allianz Infratech (P) Ltd.

B2

28-12-2010

4

 Madhya Pradesh

Allianz Infratech (P) Ltd.

B2

30-12-2010

5

Haryana

 Dishnet Wireless Ltd.

C2

14-01-2011

2/6/2011

6

 Madhya Pradesh

Dishnet Wireless Ltd.

C2

28-12-2010

2/6/2011

7

 Punjab

Dishnet Wireless Ltd.

C2

23-12-2010

2/6/2011

8

 Andhra Pradesh

Etisalat DB Telecom Pvt. Ltd.

B2

14-12-2010

9

 Delhi

Etisalat DB Telecom Pvt. Ltd.

D2

19-01-2010

7/3/2011

10

 Gujarat

Etisalat DB Telecom Pvt. Ltd.

B2

14-12-2010

11

 Haryana

Etisalat DB Telecom Pvt. Ltd.

B2

23-12-2010

12

 Karnataka

Etisalat DB Telecom Pvt. Ltd.

B2

23-12-2010

13

 Kerala

Etisalat DB Telecom Pvt. Ltd.

B2

19-01-2011

14

 Maharashtra

Etisalat DB Telecom Pvt. Ltd.

B2

28-12-2010

15

 Mumbai

Etisalat DB Telecom Pvt. Ltd.

D2

28-12-2010

7/3/2011

16

 Punjab

Etisalat DB Telecom Pvt. Ltd.

B2

23-12-2010

17

 Rajasthan

Etisalat DB Telecom Pvt. Ltd.

B2

23-12-2010

18

 Tamil Nadu  ( (Including Chennai Service Area)

Etisalat DB Telecom Pvt. Ltd.

B2

28-12-2010

19

 Uttar Pradesh (East)

Etisalat DB Telecom Pvt. Ltd.

B2

14-12-2010

20

 Uttar Pradesh (West)

Etisalat DB Telecom Pvt. Ltd.

B2

14-12-2010

21

 Andhra Pradesh

Loop Telecom Ltd.

D2

14-12-2010

22

 Assam

Loop Telecom Ltd.

D2

28-12-2010

23

 Bihar

Loop Telecom Ltd.

D2

28-12-2010

24

 Gujarat

Loop Telecom Ltd.

D2

25

Haryana

Loop Telecom Ltd.

B2

14-01-2011

26

 Himachal Pradesh

Loop Telecom Ltd.

D2

28-12-2010

27

 Jam mu & Kashmir

Loop Telecom Ltd.

D3

28-12-2010

28

 Karnataka

Loop Telecom Ltd.

D4

14-12-2010

29

 Kerala

Loop Telecom Ltd.

D5

28-12-2010

30

 Kolkata

Loop Telecom Ltd.

B2

14-12-2010

31

 Madhya Pradesh

Loop Telecom Ltd.

B2

23-12-2010

32

Maharashtra

Loop Telecom Ltd.

D2

23-12-2010

Sl. No. 

 Name Of The Service Area 

 Name Of Licensee

 Category As Per TRAI Recommendation 

 Date Of Issue Of Demand Notices For Imposition Of LD 

 Date Of Issue Of Show Cause Notice For Cancellation Of Licenses 

33

North East

Loop Telecom Ltd.

D2

23-12-2010

34

 Orissa

Loop Telecom Ltd.

B2

14-01-2011

35

Punjab

Loop Telecom Ltd.

A2

36

Rajasthan

Loop Telecom Ltd.

B2

28-12-2010

37

Tamil Nadu (including Chennai Service Area)

Loop Telecom Ltd.

D2

23-12-2010

38

 Uttar Pradesh (East)

Loop Telecom Ltd.

D2

28-12-2010

39

 Uttar Pradesh (West)

Loop Telecom Ltd.

D2

14-01-2011

40

West Bengal

Loop Telecom Ltd.

D2

14-01-2011

41

Andhra Pradesh

Sistema Shyam Teleservices Ltd.

B2

14-12-2010

42

Assam

Sistema Shyam Teleservices Ltd.

D2

28-12-2010

5/4/2011

43

Gujarat

Sistema Shyam Teleservices Ltd.

D2

28-12-2010

44

Himachal Pradesh

Sistema Shyam Teleservices Ltd.

D2

23-12-2010

45

 Jammu & Kashmir

Sistema Shyam Teleservices Ltd.

D2

 23-12-2010

46

 Madhya Pradesh

Sistema Shyam Teleservices Ltd.

D2

28-12-2010

47

 North East

Sistema Shyam Teleservices Ltd.

D2

28-12-2010

48

 Orissa

Sistema Shyam Teleservices Ltd.

D2

14-01-2011

49

 Punjab

Sistema Shyam Teleservices Ltd.

D2

23-12-2010

50

 Uttar Pradesh (East)

Sistema Shyam Teleservices Ltd.

D2

14-12-2010

51

 Uttar Pradesh (West)

Sistema Shyam Teleservices Ltd.

D2

14-12-2010

52

 Assam

Unitech Wireless (East) Pvt. Ltd.

D2

28-12-2010

53

 North East

Unitech Wireless (East) Pvt. Ltd.

D2

28-12-2010

54

 Haryana

Unitech Wireless (North) Pvt. Ltd.

D2

14-01-2011

55

 Himachal Pradesh

Unitech Wireless (North) Pvt. Ltd.

D2

23-12-2010

56

 Jammu & Kashmir

Unitech Wireless (North) Pvt. Ltd.

D2

23-12-2010

Sl. No. 

 Name Of The Service Area 

 Name Of Licensee

 Category As Per TRAI Recommendation 

 Date Of Issue Of Demand Notices For Imposition Of LD 

 Date Of Issue Of Show Cause Notice For Cancellation Of Licenses 

57

 Punjab

Unitech Wireless (North) Pvt. Ltd.

D2

 19-01 ·2011

58

 Rajasthan

Unitech Wireless (North) Pvt. Ltd.

D2

23-12-2010

59

 Madhya Pradesh

Unitech Wireless (West) Pvt. Ltd.

D2

14-01-2011

60

 Andhra Pradesh

Videocon Telecommunications Ltd.

 B2

14-01-2011

61

 Bihar

Videocon Telecommunications Ltd.

 B2

28-12-2010

62

 Himachal Pradesh

Videocon Telecommunications Ltd.

 B2

23-12-2010

63

 Karnataka

Videocon Telecommunications Ltd.

 B2

 14-01-2011

64

 Maharashtra

Videocon Telecommunications Ltd.

 B2

23-12-2010

65

 Orissa

Videocon Telecommunications Ltd.

 B2

23-12-2010

66

 Rajasthan

Videocon Telecommunications Ltd.

 B2

23-12-2010

67

 Uttar Pradesh (East)

Videocon Telecommunications Ltd.

 B2

 06-01-2011

68

 Uttar Pradesh (West)

Videocon Telecommunications Ltd.

 B2

14-12-2010

69

 West Bengal

Videocon Telecommunications Ltd.

 B2

 06-01-2011

 

 

Note:

 

(a) CategoryA2 - Cancellation of licenses needs 10 be seriously considered in view of non-utilization of spectrum and resultant loss of revenue to exchequer. This may however require legal examination.

 

(b) CategoryB2 - Liquidated damages may be imposed as per license conditions. Besides, cancellation of licenses needs to be seriously considered in view of non-Utilization of spectrum and resultant loss of revenue to exchequer. This may however require legal examination.

 

(c) CategoryC2 and D2 - Licenses may be cancelled as per license conditions in addition to levy of liquidated damages.