TELCOS FACE PENALTY FOR DELAYED SERVICE ROLLOUTS

delayed-service-fineTelecom operators which had applied for pan-India licenses way back in 2005 could now face heavy penalties for not having launched their networks within the required time frames.

The Department Of Telecommunication (DoT) had initially considered a total fine amount of Rs 477 crore, however has recently reduced the same to Rs 135.60 crore, after having several rounds of meetings with reperesentatives of the various telecom service providers.

Each of the service operators have been given a major benefit with this reduced amount, which is as per the latest calculation of the  revised liquidated damages. A total of 96 cases have been filed by the DoT against 10 operators, accordingly to high-up sources in the DoT.

The break-up of the fines are as follows:

Major players such as the Tatas would be charged Rs crore, Airtel Rs 31 crore, Reliance Rs 19.65 crore while smaller players such as Aircel and HFCL would be charged 28.85 crore and Rs 7 crore, respectively.

The only operators who are excluded from paying any penalty are Vodafone-Essar, and Public-Sector enterprises BSNL and MTNL.

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10 Comments on "TELCOS FACE PENALTY FOR DELAYED SERVICE ROLLOUTS"

 

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September 20, 2009 10:38 am 10:38 AM

@ishan
Ha ha, DoT making some free money to rum themselves… of course, this fine will poke the operators a bit, but not much.

ishan
September 20, 2009 10:14 am 10:14 AM

the current rule is that an operator’s service should be available in atleast 10% of the districts in a particular circle within a year after getting the license.and within 3 years the coverage should be 50% of the districts of that circle.in case of metros the the coverage should be 90% within a year after getting the license.

@Anuj
i think airtel faces the penalty because of the above mentioned rules.may be in some circle they failed to meet the above mentioned guidelines.

ishan
September 20, 2009 8:39 am 8:39 AM

DoT has also asked the new entrants like datacom,loop,S tel,unitech to submit the details of their network rollout till date(including the no. of base stations & locations of switching centers).if these new operators fail to fulfill the DoT norms of network rollout,they may also be fined by DoT.

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