The Department of Telecommunications (DoT) has issued licence termination notices to three telecom operators — Aircel, Etisalat DB and Sistema Shyam Teleservices (SSTL) — for delays in roll out of services in circles allotted to them.
“We have issued notices to three operators for delay in roll out of services. While Aircel and SSTL [brand name MTS] has been issued notices for three circles, in the case of Etisalat DB [earlier known as Swan Telecom] it is for two circles,” Communications and Information Technology Minister Kapil Sibal said.
These operators have been given 60 days to respond as to why their licences should not be terminated for failure to roll out networks, as per the licence conditions. In its audit report submitted last year, the Comptroller and Auditor-General (CAG) of India had pointed out that operators failed to meet their roll out obligations.
As per the rules, the licensees were required to offer services in 90 per cent of their service areas in metros and 10 per cent in district headquarters within 12 months from the date of award of licence. Earlier, 119 notices were issued and the government has collected over Rs.300 crore in penalties.