Govt to release more spectrum, notices to errant telcos soon
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Mumbai: The government says it plans to release more spectrum for the telecom sector soon and that notices will be sent to errant companies that secured the licences along with 2G spectrum despite their ineligiblity.
The decision follows telcos complaints of shortage of spectrum and the controverisal 2G spectrum allocation in 2008 under the former Telecom Minister A Raja that CAG says costed the exchequer about Rs 1.76 lakh crores.
Responding to a query on if the government would allocate more spectrum, Union Telecom Minister Kapil Sibal said, "This is something we are looking at. India is one of those countries, which has lowest quantum of spectrum. We are looking at releasing more spectrum soon."
Sibal also said his ministry will soon send notices to the errant telecom companies that were issued licences along with the spectrum even when they were not eligible.
"We have already taken a decision on this (penalising telcos). We will be sending notices to these companies soon," Sibal told reporters last evening, adding that those found guilty would be penalised.
He said the quantum and the nature of penalty would be considered by the Department of Telecom.
The companies, which have received the licences include the likes of S-Tel, Uninor, Loop and Videocon that are under government scanner for their failure to conform to the prescribed norms under 2G spectrum allocation process.
Earlier this month, Sibal in New Delhi had said that the memorandum of association and equity conditions were not fulfilled by some companies during the issue of 2G licences in 2008.
Also, he had said, the Ministry believed some of the eligibility requirement for the same were not in place when these companies sought licences. The notices will be served on these grounds.
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