TDSAT directs DoT to file reply to telco challenge against LD

A Telecom Disputes Settlement and Appellate Tribunal (TDSAT) bench, headed by its Chairman Justice S B Sinha, while directing the DoT to file its reply within ten days, also directed various telcos to file their rejoinder within ten days thereafter.

TDSAT's direction came over a batch of petitions filed by various telcos challenging the demand for crores of rupees as Liquidated Damages (LD) for their failure to roll-out their obligation within the stipulated period.

The TDSAT listed the matter for further hearing on May 2, 2011. The DoT has requested to keep the matter sine die as the cases relating to the 2G scam is pending before the Supreme Court.

Earlier, in its interim order, TDSAT had directed the telcos to pay 60 per cent of the LD demanded by the DoT.

Various telcos had already paid LD charges for some circles before coming to the tribunal challenging the penalty imposed by the DoT.

The demand of penalty by DoT was opposed by various telcos, including Uninor, Videocon Telecommunications, Sistema Shyam Teleservices, S Tel, Aircel, Dishnet Wireless and Idea Cellular.

The DoT had sent notices to several firms, which got new 2G licences bundled with start-up spectrum, but have not started offering services in various circles.

As per the conditions of the Unified Access Service Licences (UASL), the telcos are required to roll out their networks within a year from the date of allocation of spectrum.

According to the agreement, in case new licencees fail to roll out services within the stipulated period, the DoT shall be entitled to recover liquidated damages.