Uninor, MTS, Etisalat DB Penalized for Mobile Service Launch Delay

Mobile Service operator Uninor, Cheers Etisalat DB (Swan- Cheers Mobile), Uninor, MTS (Sistema-Shyam) Loop Telecom and some other operator finally paid penalties to the Department of Telecommunications (DoT) for failing to launch commercial mobile/telecom services on time.

Earlier The Telecom Regulatory Authority of India (TRAI) was asked Department of Telecommunications (DoT) to cancel CMTS/UAS licences given to telecom operators including Cheers Etisalat DB (Swan- Cheers Mobile), Loop Telecom, Uninor, Videocon, MTS (Sistema-Shyam) and Aircel that have not met network roll-out conditions set by the authority.

Uninor, the joint venture between Norway’s Telenor and Indian Reality major Unitech, had deposited the penalty as claimed by the DoT. The operator also said that various factors, including delay in clearances required for each site, new last minute pre-launch testing requirements and new equipment security clearance processes, came in the way of roll out and were beyond our control.The operator requested to the DoT to consider these in its assessment of penalty.

CDMA Mobile service operator MTS (Sistema-Shyam Teleservices Limited) said the company has paid Rs.11 crore for imposition of liquidated damages towards roll-out obligations to the DoT.

Etisalat DB Telecom (Cheers Mobile) also has made payments for Rs 9.9 crore as a penalty by DoT under protest.Some thier operators, including Loop Telecom and Videocon, are also facing the same action for missing the roll-out deadline.

The Loop Telecom has paid the penalty of Rs 2.7 crore to the government for missing out network roll-out in the stipulated period.

Earlier The Comptroller and Auditor General of India’s report revealed that most of new operators, who obtained the initial 4.4 Mhz spectrum in 81 service areas during the period Apr 2008 to Jan 2009, failed to roll out the commercial telecom services in any service area till Dec 31st 2009. The report also slamming the Telecom Ministry for irregularity and impropriety in giving licences to new players in 2008, causing a loss of a whopping Rs. 1.76 lakh crore to the exchequer.

According to the CMTS/UAS licencing conditions, the licencees/operator were required to roll out the telecom/mobile services in 90% of service areas/circles in metros and 10% in district headquarters within 12 months of the date of award of licenees.

This Article Was Written By: Sanjay Bafna

Sanjay Bafna - National Editor (Telecom and Mobile Phone)

Sanjay Bafna is an entrepreneur and National Editor at TelecomTALK covering Mobile Operators, 3G, Broadband, 4G, LTE, Telecom Policies & Regulations and Mobile Phones. He is well known Telecom and Mobile Analyst, Love Tea and Chocolates.

{ 37 comments… add one }

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  • saroj kumar January 16, 2012 9:03 pm, 9:03 PM

    Videocon and Loop Still not launched in orissa
    when are they launching?

    Reply
  • max November 10, 2011 4:06 pm, 4:06 PM

    doc vmc :UNinor,Videocon and Loop Still not launched in delhi
    when are they launching?

    2020

    Reply
  • doc vmc November 10, 2011 1:34 pm, 1:34 PM

    UNinor,Videocon and Loop Still not launched in delhi

    when are they launching?

    Reply
  • Ayush August 27, 2011 6:40 pm, 6:40 PM

    Cheers,UNinor,Videocon and Loop Still not launched in Rajastha….Does anybody knows reason 4 delay….?

    Reply
  • tushar k. March 10, 2011 11:25 pm, 11:25 PM

    shocking news for mumbai videocon customers:
    call rates to maharashtra has been increased to Rs.1/min

    Reply
  • Ajay Kumar Tripathi February 5, 2011 2:41 pm, 2:41 PM

    Good afternoon sie/maim
    My job is 1 year computer opareter job in Tata Docomo.and 6 munth PSR job in Vodafone.
    And current computer oparter job in Mts . my qualification is BA appeyring. My computer corce is complite.

    Reply
  • PD January 4, 2011 5:09 pm, 5:09 PM

    @parashar kumar
    Parasharji – You mean SCAM in a SCAM ! No. In my view, this is only, as mentioned elsewhere, action on the “penalty clause”. This does’t, or should not be taken as “let off” measures. Violation of all other norms including “ineligibility” are being ascertained and in finality, spectrum will have to be withdrawn after adjudication processes ! Your views are quite understandable !

    Reply
  • Raghu January 4, 2011 4:06 pm, 4:06 PM

    @Manoj Abhigyan
    thanks. sorry did not see the earlier post.

    Reply
  • Manoj Abhigyan January 4, 2011 2:06 pm, 2:06 PM

    Raghu :
    @Manoj Abhigyan
    so did u get any reply from Uninor customercare. has it been refunded to your a/c

    Yeah Raghuji, they refunded deducted amount next day. I posted it in earlier comments. Thanks!

    Reply
  • Raghu January 4, 2011 1:39 pm, 1:39 PM

    @Manoj Abhigyan
    so did u get any reply from Uninor customercare. has it been refunded to your a/c

    Reply
  • parashar kumar January 4, 2011 12:22 pm, 12:22 PM

    where as the measure taken by DoT to charge them to the tune of 3-4 crore rupees each is just an eyewash. And to our utter surprise, even self proclaimed mass oriented media has not even taken a pain to point it.

    Reply
  • parashar kumar January 4, 2011 12:17 pm, 12:17 PM

    I smell another scam in the whole affair of penalising the telecos against the recommendation of Trai which has clearly stated that spectrum should be taken back.Auction of spectrum even in the circles where telecos are yet to launch there services by the date of recommendation wold have resulted in huge windfall for government which would have resulted in bridging the deficit caused by 2G scam. this would have resulted into revenue of at least 62000 crores, though modest,as most of the spectrum awardees, baring Uninor, Stel are yet to launch there service in all the Circles.

    Reply
  • Manoj Abhigyan January 2, 2011 5:09 pm, 5:09 PM

    Uninor is going to be a flop company as they have choosen the way of Reliance, which is in a huge loss due to cheating their customers. They activated caller tune on my Uninor number and deducted Rs.40 which was switched off at the time when this service was activated.

    Reply
  • Arjun A December 31, 2010 4:03 pm, 4:03 PM

    Sudeep Das :
    MTS , Videocon when they are launching in Orissa? and S-tel & Videocon In Kolkata.

    STel does not have a license for Kolkata

    Reply
  • Raghu December 31, 2010 12:23 pm, 12:23 PM

    @PD
    yes definitely law will take its course but in the end everything will get sorted out by paying the money.

    Reply
  • Sudeep Das December 31, 2010 10:53 am, 10:53 AM

    MTS , Videocon when they are launching in Orissa? and S-tel & Videocon In Kolkata.

    Reply
  • PD December 31, 2010 8:36 am, 8:36 AM

    Raghu :
    @PD
    ok thanks for the update. by the way can they start launching in other circles

    As of now they can (pl. note they are doing so), because they have been issued spectrum/licence. Meanwhile.,as all of us are aware, a probe into the 2g scam is also on, and DoT has issued notices to all those who have been issued licence/spectrum illegitimately. Therefore their continuity/permanency in the field all depend on the results of adjudication by the competent authorities (DoT, Trai, etc. etc.) Anyway, subscribers of these service providers may not suffer for once the MNP comes into force they can very well port to any service providers of their choice in their respective circles ! In the end, remember, the Law will take its course !

    Reply
  • Raghu December 30, 2010 10:46 pm, 10:46 PM

    @PD
    ok thanks for the update. by the way can they start launching in other circles

    Reply
  • PD December 30, 2010 9:54 pm, 9:54 PM

    @Avi H
    Those recipients having some knowledge, forget experience, will have to, and can start – else penalty and share of of revenue loss leave alone Raja’s considerations paid already ! But what about those inexperienced (and ignorant of telecom fundas) telecom-hawkers who thought of making fast bucks. They now face a three dimensional onslaughts – cost of Raja’s kindness – penalty for breach of licence conditions – share in the revenue loss make-ups ! Take a break for BREAKING NEWS / SHOCKING NEWS ! Jaisa karni vysa bharni

    Reply
  • Webly Gomes December 30, 2010 9:26 pm, 9:26 PM

    It’s just an eye wash to cover the daddy of all scams, (2G scam).

    Nevertheless, A good move by the ‘Sleeping giant’

    Reply
  • Avi H December 30, 2010 9:21 pm, 9:21 PM

    PD :

    Kaushik Roy :
    BACH GAYA SAALA

    Raghu :
    @Sanjay Bafna
    so now the fines are cleared and they can start launching in other circles. am i right? pl clarify

    How could it be ! This is a penalty is for post-licence breach of conditions. The real set back is still still to come, each one of the Raja beneficiaries has to contribute and pay and makeup the loss suffered by th exchequer (1.76 lakh crores ?) And that is yet to be calculated, wait and see the outcome of probe(s) by PAC/CBI and JPC too (??)

    Sahi kaha…. But ab Uninor orr baki ke operator jaldi jaldi service launch karenge baki ke circles me…

    Reply
  • PD December 30, 2010 7:22 pm, 7:22 PM

    Kaushik Roy :
    BACH GAYA SAALA

    Raghu :
    @Sanjay Bafna
    so now the fines are cleared and they can start launching in other circles. am i right? pl clarify

    How could it be ! This is a penalty is for post-licence breach of conditions. The real set back is still still to come, each one of the Raja beneficiaries has to contribute and pay and makeup the loss suffered by th exchequer (1.76 lakh crores ?) And that is yet to be calculated, wait and see the outcome of probe(s) by PAC/CBI and JPC too (??)

    Reply
  • Kaushik Roy December 30, 2010 6:08 pm, 6:08 PM

    BACH GAYA SAALA

    Reply
  • Anbu John Boban December 30, 2010 5:55 pm, 5:55 PM

    Tata Docomo , the youngest player have made through !

    Reply
  • Jaspreet Singh December 30, 2010 5:17 pm, 5:17 PM

    Aircel is the best !!! I stay connected to my friends and family uninterrupted.

    Reply
  • Karthik Kumar V G December 30, 2010 4:44 pm, 4:44 PM

    I feel the penalty amount is very less…This amount is like peanuts for these companies. So Government should have used this opportunity to collect the amount equal to the spectrum fees that they have paid. Also they should have taken back the allocated spectrum which is not yet used by these companies.

    Reply
  • Karthik Kumar V G December 30, 2010 4:41 pm, 4:41 PM

    @Raghu
    Videocon Mobile Service is the 5th Operator.

    Reply
  • Raghu December 30, 2010 3:44 pm, 3:44 PM

    @sanjay Bafna
    who is the some other operator i.e. 5th Operator mentioned as ” Some Other Operator”. can u pl clarify

    Reply
  • Raghu December 30, 2010 3:43 pm, 3:43 PM

    @Sanjay Bafna
    so now the fines are cleared and they can start launching in other circles. am i right? pl clarify

    Reply
  • A Mohapatra December 30, 2010 3:16 pm, 3:16 PM

    Gourav :
    Now they will launch in remaining circles.

    Yes, MTS has started rolling out in more and more new circles.

    Reply
  • Gourav December 30, 2010 3:10 pm, 3:10 PM

    Now they will launch in remaining circles.

    Reply
  • Keshav Jha December 30, 2010 2:59 pm, 2:59 PM

    Waah! Good to see the commitment to launch service in remaining circles by Uninor and MTS.

    Reply
  • PD December 30, 2010 2:48 pm, 2:48 PM

    Very sad – They have already paid to lawyer Raja and his cohorts for some obvious reasons and now face “the law taking its course” in our country !

    Reply
  • ANIRBAN December 30, 2010 2:31 pm, 2:31 PM

    I think GOVT also responsible for this delay like their security policy.

    Reply
  • Raj December 30, 2010 2:31 pm, 2:31 PM

    @Avi H
    Avi H December 30th, 2010 at 14:20 | #1 Reply | Quote Uninor ko to Delhi NCR me spectrum hi nahi diya……. to fine kahe ka???

    Kyun Delhi ke alawa aur koi jagah nahi hai India mein ??

    Reply
  • parashar kumar December 30, 2010 2:23 pm, 2:23 PM

    They have been rightly penalised for the delay in the telecom circles, but at the same time spectrum given for the circles in which they are yet to launch shold be taken back and put to Auction in order to maximise the revenue to the Government.

    Reply
  • Avi H December 30, 2010 2:20 pm, 2:20 PM

    Uninor ko to Delhi NCR me spectrum hi nahi diya……. to fine kahe ka???

    Reply

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