Videocon to seek review of order cancelling licences

Telecom service provider Videocon Wednesday said it would move the Supreme Court for a review of the judgment cancelling its 21 licences issued in 2008 for the 2G spectrum.

"We will be filing a review petition in the Supreme Court tomorrow (Thursday). We are innocent and we have faith in the judiciary," Videocon chairman Venugopal Dhoot told IANS.

He also sought to refute reports that the company has any plans to shut down its operations.

"We are very much there and have no plans to exit the business. We in fact have bullish expansion plans once the issue is sorted out."

According to the Telecom Regulatory Authority of India (TRAI), the firm had over 5.4 million subscribers across the country as on Dec 31.

Earlier during this month, the Supreme Court ordered cancellation of 122 licences issued during the tenure of former telecom minister A. Raja, affecting nine telecom firms.

According to Videocon, it had applied for these licences in 2006 which were delayed and given to them in 2008. The company wants to be delinked from other firms who were issued licences in 2008.

Other companies have also reacted to the cancellation.

Tata Teleservices, which stands to lose three licences, Wednesday filed a review petition in the apex court.

Russian conglomerate Sistema has also sent notice to the Indian government threatening international arbitration proceedings if the government failed to resolve the issue of revocation of its licences within six months.

Sistema runs its telecom business in India under the brand name MTS under a joint venture with Shyam Group.

It holds 56.68 percent stake in Sistema Shyam Teleservices (SSTL) and has invested $3.1 billion in the country.

STel which got six licences in 2008, on the other hand, has written a letter to the prime minister seeking return of all its investment following the cancellation of its licences.