DoT begins survey of 2G scam-hit cos

The Department of telecommunications (DoT)has initiated a field survey to find the facts before taking action againsttelecom operators who missed their roll- out obligations.

They were given start-up licences inJanuary 2008 by former telecom minister Andimuthu Raja. Last week, he wasforced to resign after being embroiled in the controversy over distributing 2Gspectrum cheap.

A telecom ministry official said that it isconducting the field survey to ascertain the quantum of violation by theseoperators. The Telecom Enforcement Resource Monitoring (TERM) cell in the DoTis collecting data after conducting the field surveys. DoT is expected to sendshow cause notices to these operators soon.

Time for audience poll DoT has initiated a field survey toascertain the quantum of violation by the operators before taking actionagainst those who missed out on their roll- out obligations These operators were given start- uplicences in January 2008 by former telecom minister A. Raja The Telecom Enforcement Resource Monitoring( TERM) cell in the DoT is collecting data following the field surveys According to the license agreement,operators are required to roll out the services in 90% service areas in metrosand 10% district headquarters in other service areas The 2G scam involves the indictment by theCAG of India of former telecom minister A. Raja for irregularities in theallocation of 2G spectrum, causing a loss of Rs 1.76 lakh crore to theexchequer

According to the license agreement,operators are required to roll out the services in 90 per cent service areas inmetros and 10 per cent district headquarters in other service areas within 12months of the award of licences.

DoT's move comes in the wake of the TelecomRegulatory Authority of India ( Trai) acting tough against new telecom playerswho were given start- up licences in 2008 for missing out on roll- outobligations and improper roll- out of services.

It has recommended termination of 69 of the122 2G telecom licences given to five telcos, including Loop(20), Etisalat DB earlier Swan (15), Sistema- Shyam ( 11), VideoconTelecommunications (10), Uninor (8) and Aircel (5). These operators are underthe scanner for not effectively rolling out the network services as per thelicence terms and conditions for effective utilisation of the scarce spectrum.

The 2G scam involves the indictment by theComptroller and Auditor General (CAG) of India of A. Raja for irregularities inthe allocation of 2G spectrum, causing a loss of Rs 1.76 lakh crore ($ 40billion) to the national exchequer.

The regulator had recommended that licencesgiven to Etisalat in at least 15 circles be cancelled. These circles wereinitially given to Swan Telecom, which the CAG has dubbed as a front company ofthe Anil Ambani group. Swan was taken over by Etisalat. The CAG has alsorecommended that 10 circles given to Sistema- Shyam be cancelled.

However, Sistema- Shyam, a JV between theShyam group and Russian giant Sistema has claimed that they have rolled outservices in all 22 circles and has over 70 lakh subscribers in India.

Uninor claims it has rolled out services in12 circles and is in process of starting up in other areas. The newly appointedtelecom minister Kapil Sibal on Friday said his ministry will consider Trai'sproposal to cancel 69 of the 122 2G licences.

Based on Trai's suggestions, the governmentis mulling imposing huge penalty on the erring operators. The perceptionbuilding up in government circles is that if the exchequer has lost money dueto under- pricing of spectrum, there should be ways to make up the loss.