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The department of telecom (DoT) has termed 3G roaming pacts illegal
and, hence, will not allow Bharti, Idea and Vodafone to continue with their
roaming arrangement. Telecom secretary R Chandrasekhar has said that
the telecom ministry has not decided if they would impose any penalty on
the operators. However, they have issued notices to the operators to
discontinue the 3G roaming arrangements.
Bharti currently has 3G licenses in 13 circles whereas Idea and Vodafone
have licenses in nine circles each. With the roaming arrangement, they
could offer 3G services in 20 out of 22 circles except Punjab and Odisha.
According to the telecom companies, the government had allowed intracircle roaming on 3G in a clarification before the 3G auction. The
companies would appeal to the TDSAT against the government directive.
According to media reports, in an earlier letter to the Prime Minister, the
management of Bharti Airtel, Idea Cellular and Vodafone stated:
"In the event 3G intra-circle roaming is now deemed impermissible, then,
it would be a clear breach of our contract and the pre-auction
confirmation given by the Government. In that eventuality, we request
that our spectrum auction payments be refunded to us with interest
along with compensation for all the capital investments made by us."
Also, the new draft telecom policy allows spectrum sharing. If it is
implemented, roaming agreement should be allowed under that. We
believe, other than the revenue impact, telcos would also be impacted by
a penalty if the government chooses to impose it. The penalty may be
higher for Idea and Vodafone since they allowed roaming in more circles
than Bharti Airtel.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
The department of telecom (DoT) has termed 3G roaming pacts illegal
and, hence, will not allow Bharti, Idea and Vodafone to continue with their
roaming arrangement. Telecom secretary R Chandrasekhar has said that
the telecom ministry has not decided if they would impose any penalty on
the operators. However, they have issued notices to the operators to
discontinue the 3G roaming arrangements.
Bharti currently has 3G licenses in 13 circles whereas Idea and Vodafone
have licenses in nine circles each. With the roaming arrangement, they
could offer 3G services in 20 out of 22 circles except Punjab and Odisha.
According to the telecom companies, the government had allowed intracircle roaming on 3G in a clarification before the 3G auction. The
companies would appeal to the TDSAT against the government directive.
According to media reports, in an earlier letter to the Prime Minister, the
management of Bharti Airtel, Idea Cellular and Vodafone stated:
"In the event 3G intra-circle roaming is now deemed impermissible, then,
it would be a clear breach of our contract and the pre-auction
confirmation given by the Government. In that eventuality, we request
that our spectrum auction payments be refunded to us with interest
along with compensation for all the capital investments made by us."
Also, the new draft telecom policy allows spectrum sharing. If it is
implemented, roaming agreement should be allowed under that. We
believe, other than the revenue impact, telcos would also be impacted by
a penalty if the government chooses to impose it. The penalty may be
higher for Idea and Vodafone since they allowed roaming in more circles
than Bharti Airtel.
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