SC orders telcos which did not participate in 2G auction to cease operations
Moneylife Digital Team 15 February 2013

Telecom companies which continued operation after cancellation of licences will pay fee as per reserved price fixed for fresh auction in November 2012

The Supreme Court on Friday ordered telecom companies whose licences were cancelled and did not participate in fresh auction for 2G spectrum will cease to operate immediately.


However, telecom companies which were successful in the fresh auction held on November 12 and 14, 2012 will be asked to start their services in the respective circles immediately, the court said.


“Telecom companies, which have been unsuccessful in the bidding and those after the cancellation of the licences did not participate in the fresh auction, are directed to cease from continuing operations forthwith and the successful bidders will immediately start in their respective circles,” the court said.


A bench comprising justices GS Singhvi and KS Radhakrishnan has directed that those telecom companies, which were allowed to continue operations after the scrapping of their licences by 2 February 2012 judgment, will have to pay the reserved price fixed for the licences in the first round of the auction held in November 2012.


The apex court by its interim orders had extended the deadline for them to continue with their operations.


The bench clarified that the apex court’s 2 February 2012 judgment will not be applicable on telecom companies holding the spectrum with 900 MHz band.


The bench also directed to immediately put on fresh auction the entire 2G spectrum for the licences cancelled by it.


In February last year, the Supreme Court had cancelled 122 telecom licences allotted by then telecom minister A Raja in 2008 and ordered fresh auction of 2G spectrum. Raja is accused of giving away precious spectrum as throwaway prices to several telecom companies.

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