Several Indian telcos including Etisalat DB, Loop Telecom and Unitech Wireless have reportedly paid penalties to the federal government for failing to launch their services within a year of receiving radio bandwidth.
According to local reports, the…
Several Indian telcos including Etisalat DB, Loop Telecom and Unitech Wireless have reportedly paid penalties to the federal government for failing to launch their services within a year of receiving radio bandwidth.
According to local reports, the Department of Telecom (DoT) has given them 15 days to pay up in order to avoid cancellation of licences amid the 2G scam saga.
The three companies were quoted stating that their penalties had been paid under protest.
Over the last few months, the Indian telecom sector has been in embroiled in scandal, after it was revealed that 2G licences sold in 2008 were underpriced.
A report from the Comptroller and Auditor General of India (CAG), the government’s auditor, explained that the scam caused a Rs1.76trn (US$40bn) loss to the government.
In the meantime, the Telecom Regulatory Authority of India (Trai) argued that some operators did not meet their rollout obligations, which include covering at least 10% of the district headquarters within 12 months of receiving licences.
It therefore recommended that as many as 38 telecom licences be cancelled or their owners fined.
In related news, former Indian telecom minister A. Raja, who resigned amid the scam, was questioned in late December by Indian federal investigators. He is suspected of changing some rules when assigning 2G licences.
Back in December, Prime Minister Manmohan Singh also said he was willing to be questioned by the Public Accounts Committee (PAC), adding he had nothing to hide.
Singh, who has enjoyed a reputation for honesty since becoming PM in 2004, is reportedly looking to protect his legacy. Although he is not suspected of any direct wrongdoing, investigators are interested to know why it took Singh more than a year to examine a request from the opposition to prosecute A. Raja.
