Tikona Faces a Rs 2.5 Crore Penalty for Delaying the Network Roll Out of Wireless Broadband Service Roll Out in Rajasthan: Report

The Department of Telecommunications (DoT) has imposed a fine of Rs 2.5 Crore on Tikona for delaying the network roll out of wireless broadband service in Rajasthan. The DoT has penalised Tikona using its discretionary powers, which are similar to 3G networks. It is said that Tikona has delayed the network roll out by more than three months. Tikona will be soon part of Bharti Airtel.

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Tikona Digital, which was acquired by Bharti Airtel had purchased BWA spectrum in 5 circles for Rs 1058.2 crore in 2010 auction of radiowaves. The broadband service provider also paid Rs 97.32 back then for BWA spectrum in Rajasthan circle.

“For delay in roll out obligation, a show cause cum demand notice was issued to Tikona Digital for the imposition of a penalty of Rs 2.43 crores which equivalent to 2.5% of the successful bid amount in Rajasthan circle on October 23. The company deposited the penalty on October 25. Thereafter, its roll out was cleared,” an official source told PTI.

For the unknown, as per the Broadband Wireless Auction rules of 2010, DoT will withdraw the spectrum which the spectrum holders will not use within five years from the effective date of spectrum allocation.

He further said: “After this permission for Tikona, BWA spectrum trading with Airtel was granted.” The PTI report also said that Tikona had to complete the roll out of the BWA spectrum within five years from November 19, 2010, but could do so in Rajasthan only by February 11, 2016. The report also added that the action was taken way Tikona clearing the company’s roll out.