As per the Supreme Court’s ruling on February 15, 2013, the telecom firms whose licences were quashed by the verdict and stayed away from participating in fresh auction for 2G spectrum will now cease to operate forthwith. The apex court on January 14 had extended till February 4, the January 18 deadline for existing operators of 2G spectrum to carry out operations. The deadline was further extended till further orders.
This ruling comes as a disappointment to companies like Sistema and Tata Tele, who did not bid in the auction. Sistema Shyam, Idea Cellular, Videocon and Tata Teleservices had filed separate petitions in the last stage of appeal available in Indian law. However, the court ruled all these petitions as invalid. Sistema Shyam, which uses the less popular CDMA technology, had argued that its case was different from the others because there had been no competition for CDMA airwaves in the 2008 sale, given that most bidders were interested in GSM services.
Besides, the apex court ordered the telecom firms, which continued operation after cancellation of licenses, to pay fee as per the reserved price fixed for fresh auction in November 2012. The Supreme Court ruled that all 2G spectrum freed up when licences were cancelled must be auctioned. Furthermore, the apex court clarified that its February 2, 2012 order cancelling licences will not be applicable on telecom firms holding 900 MHZ band spectrum.
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