TDSAT clears 3G ICR road-block; quashes Rs 1200 crore penalty imposed by DoT

Providing relief after almost two years to telcos, Bharti Airtel, Vodafone and Idea Cellular, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) allowed the 3G intra-circle roaming (ICR) agreements signed between the three companies, stating that the pacts didn't violate any license conditions. Besides, the tribunal also quashed the cumulative penalty of Rs 1,200 crore imposed on them by Department of Telecom (DoT). The tribunal opined that denial to such roaming pacts will result in under-utilization of 3G spectrum, which would not be in national interest. Thus, with this development, the operators will be allowed to use each others' 3G spectrum in circles, where they do not have 3G airwaves, allowing them to offer their subscribers seamless 3G access across India. The three operators won 3G spectrum in 2010 auction. While, Airtel won 3G spectrum in 13 out of 22 telecom service area for a sum of Rs 12,295.46 crore, Vodafone and Idea Cellular bagged 9 and 11 circles for Rs 11,617.86 crore and  Rs 5,768.59 crore respectively. However, DoT, on December 23, 2011 issued notice to Airtel, Vodafone and Idea barring these companies from providing 3G ICR within 24 hours and report compliance, but the order was challenged by telecom operators. Post to which, in July 2012, TDSAT gave split verdict where one of the bench members ruled in favour and other member ordered against it on account of which DoT again issued notice to telecom operators asking them to stop 3G ICR service along with penalty cumulatively amounting to about Rs 1,200 crore which was quashed by the tribunal. Refusing to relent, the operators then approached Delhi High Court (HC) which ruled in favour of DoT's decision to hold the 3G roaming pact of the telecom major as illegal. Telecom operators then moved the Supreme Court against order of HC and sought that the case be transferred to TDSAT. According to the 3G ICR agreements entered into by the three telcos, Airtel sought access to Vodafone's 3G network in four service areas- Maharashtra, Kolkata, Haryana and UP East. Vodafone accessed six 3G circles of Airtel- Assam, Bihar, Karnataka, North East, Rajasthan and UP West, besides 7 circles of Idea Cellular- Andhra Pradesh, Himachal Pradesh, Jammu and Kashmir, Kerala, Madhya Pradesh, UP West and Punjab. Idea is yet to start 3G service in Punjab. Idea Cellular, on its part, secured the right to provide 3G services using Vodafone's network in Delhi, Tamil Nadu, Chennai and Kolkata.