Telcos to be fined for missing rollout deadline

$\"\"$ The telecom department is finalising the quantum of penalty for delayed rollout of services by new players in the telecom market, an official with direct knowledge of the matter said. The latest entrants include Videocon, Sistema, Uninor, Loop, S Tel and Etisalat DB. Aircel Cellular that got licences for some circles before 2008 may also be penalised for delays.

India’s telecom regulations mandate that any company with a licence must meet deadlines for commercial launch of services. These six mobile phone companies, which bagged licenses in January 2008, have missed several deadlines for launching commercial services, the Department of Telecom (DoT) official said. DoT has powers to cancel licences of mobile phone companies in circles where they have not launched services even a year after getting the licence.

At the same time, as reported by ET on Monday, DoT is examining proposals that will allow many of these new mobile operators, to sell out or exit, paving the way for a possible consolidation in the 14-player market.

Some of the new entrants refused to comment on the development. Etisalat DB promoter Shahid Usamn Balwa said the ‘company had fulfilled all its rollout obligations and hence the penalty would not apply to them’. An executive with another new entrant explained that DoT had the powers to impose financial penalties for delayed launches.