Unsuccessful bidders and telecom companies which opted out of participating in the first round of fresh auction for 2G spectrum following cancellation of their licences by last year’s order would not be allowed to continue their service, the Supreme Court on Monday said.

The apex court asked the government to take a position on the issue and made it clear that those telecom companies which continued with their operation after the February 2, 2012, verdict will have to make payment on the basis of reserved price fixed for the fresh auction.

The court by its various interim orders allowed the telecom companies whose licences were quashed by the verdict to continue with the operation till the fresh auction for 2G spectrum was completed.

“You (Department of Telecommunication) have to take a position on those who have been unsuccessful in auction conducted on November 12 and 13, 2012. They cannot be allowed to operate in the events when there are bidders who have been successful.

“Those who did not go for the bid are also not entitled to continue,” a bench comprising justices G S Singhvi and K S Radhakrishnan said while reserving its order on the issue.

The bench said allowing those who were unsuccessful and had not participated in the auction to continue with operation would generate more litigation.

It said auction will have to be done for all those licences for the 2G spectrum for which letters of intent were issued on January 10, 2008 and were quashed by the apex court’s February 2, 2012 judgement.

“Whatever spectrum were released as a result of the quashing of licences must be put on auction,” the bench said, adding that it was only concerned with the 1800 MHz and 800 MHz band and not with 900 MHz.