March 10: The government has issued a showcause notice to Swan Telecom (now Etisalat DB) asking to explain why its licences in Delhi and Mumbai circles should not be cancelled for missing roll-out obligations.
The move comes after the telecom ministry collected over `300 crore financial penalty from most of the new operators, including Etisalat DB, for not starting services in stipulated time after getting the licences and spectrum. Etisalat DB’s former managing director, Mr Shahid Balwa, is in judicial custody for his alleged involvement in the 2G scam.
Etisalat DB was formed after Swan Telecom inducted UAE-based Etisalat as a foreign partner with 45 per cent equity stake.
According to sources in DoT, notice for cancellation of the licence is as per the recommendations of telecom regulator Trai, which had asked the government to impose penalty and cancel new licences.