Airtel Bharti Airtel asked to stop 3G services in seven circles by March-end

[Xen]

The telecom department will ask Bharti Airtel, India's largest mobile phone company, to stop providing third generation (3G) services 'within fifteen days' in seven circles where it does not have frequencies to provide high-end data services, an official aware of the development told ET. The company will also be asked to pay a penalty of 350 crore, or 50 crore in each of the seven regions where it provides 3G services through roaming pacts with its rival operators - Vodafone and Idea Cellular.

It is learnt that the telecom department (DoT) is preparing similar notices for Vodafone and Idea Cellular.

But, in the case of Bharti Airtel, telecom minister Kapil Sibal has already approved the DoT's move to slap a 350-crore penalty on the telco and will also ask the company to stop offering 3G services outside its licensed zones through roaming pacts.


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[Xen]

HC allows Airtel to continue with 3G roaming facility



Telecom companies offering 3G services can continue to offer pan-India services for the time being, on the basis of a ruling by the Delhi High Court on Monday.

The court has stayed the execution of a department of telecommunications (DoT) order to immediately stop 3G mobile services by companies where they do not own licences. The order was challenged by Bharti Airtel whom the department had asked to stop offering the services in seven zones where it was doing so through sharing of the airwaves with service providers which had the licences for those zones.

The order was issued last week to Bharti after it submitted its stand on the subject to a DoT-constituted committee on the matter as per the direction of the Delhi High Court in October 2012. The department also levied a penalty of Rs 350 crore on India's largest telecom service company. Similar penalty could be levied on Vodafone and Idea too once their hearing before the committee is over.

The case relates to the 3G auctions for airwaves in 2010 where no company had won the band for pan-India. As the companies began to roll out their services it meant they had to use each other's spectrum.


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[timkamat]

That would mean if a customer wants 3g services throughout India, he will need to opt for different service providers while roaming in each of these areas! Ridiculous, isnt it? DOT seems interested only in filling its coffers. It is least interested in customer satisfaction.

 

[Xen]

No its not like that. Airtel and other 3G operators are violating the license norms. License allows them to share network but operators had started selling new connection also which was not allowed and leakage of revenue.

 

[Technoglitch]

so what would happen if an airtel 3G customer travels to state where it has no license?

 

[timkamat]

Exactly that is what I pointed in my above post. So if I travel to a place where AirTel has no 3g license I will will have to be content with 2g even after paying for 3g plans.

 

[Xen]

so what would happen if an airtel 3G customer travels to state where it has no license?

It will work as it is like 2G Network. Airtel, Idea and Vodafone has mutual agreement of Network Sharing.

e.g: A is using Vodafone 3G in City A. When A goes to City B and City B don't have Vodafone 3G license, A will latch either on Idea or Airtel.

 

[Technoglitch]

It will work as it is like 2G Network. Airtel, Idea and Vodafone has mutual agreement of Network Sharing.

which is illegal according to DOT and wanted all telecom ops to stop it. If it comes to effect what would be the next action by telecoms?

 

[IndianMascot]

No yaar. Roaming sharing is not illegal. But acquisition of new customers on a roaming license is illegal. This dispute is going since last 2 years.

Idea is not having 3G license in mumbai. Still they are sharing network with Vodafone and airtel and selling new connection openly.

 

[timkamat]

Which means AirTel cant sell a 3g connection where it has no 3g license, but can have roaming sharing with other operators for the benefit of those 3g subscribers who are roaming into this area.