India’s Telecom Enforcement Resource and Monitoring (TERM) cell, part of the Department of Telecommunications, has ruled that 3G roaming agreements between Bharti Airtel, Vodafone Essar and Idea Cellular were illegal, according to local…
India’s Telecom Enforcement Resource and Monitoring (TERM) cell, part of the Department of Telecommunications, has ruled that 3G roaming agreements between Bharti Airtel, Vodafone Essar and Idea Cellular were illegal, according to local reports.
Newspapers explain that these agreements, which were signed earlier this year, enable the companies to offer pan-India services by sharing their infrastructure.
But the Central Vigilance Commission (CVC) reportedly sought clarifications from the DoT on the issue to determine whether these agreements would be equivalent to spectrum sharing or MVNOs, both of which are currently not allowed.
In a statement to TelecomFinance, a Vodafone Essar spokesperson wrote: “The arrangement to provide 3G services is in complete compliance and agreement as per government policy and guidelines.”
Idea Cellular said: “Presently, these media reports are conjectural, as we have not received any such ruling.” Bharti Airtel could not be reached for comment before the press deadline.
The Economic Times explain that if the government acts on the recommendations of the TERM cell, the companies could face fines of up to Rs500m (US$10m) for every circle where they have entered into roaming agreements.
