Idea, Spice drag DoT to TDSAT over spectrum

NEW DELHI: Idea Cellular and Spice on Monday approached the telecom tribunal, TDSAT, against what they termed as ���faulty implementation of the first-come-first-served policy��� in the issue of spectrum by DoT. Both the companies headed the queue for spectrum until last month, but a sudden change of policy by the DoT resulted in the pecking order for allocating spectrum being based on who deposited the entry fee first. This brought other bidders to the top of the list and resulted in Idea and Spice losing their lead positions.

However, the DoT has justified the logic behind the policy change. In a communicaiton to telecom minister A Raja, DoT said: ���This issue never arose in the past as at one point of time only one applicaiton was processed and the Letter of Intent was granted and enough time was given to the company for complaince of conditions of the LoI.

However, since this government has adopted a policy of ���no cap��� (on the total number of players who can offer telecom services) on the number of licences, a large number of LoIs are proposed to be processed simultaneosly. In these circumstances, an applicant who fulfills the conditions of the LoI first, will be granted licence first, although several applications will be issued LoI simultaneously.���

As per the earlier existing first-come-first-served policy, priority for spectrum was based on the date of licence applications. However, as first reported by ET, the new queue for spectrum, based on who paid the entry fee first, is headed by Videocon-owned Datacom in 19 out of 21 circles, for which it applied for licences. Swan and Idea Cellular head the queue for spectrum in the remaining three circles.

Meanwhile, the Cellular Operators Association of India (COAI), the body representing leading GSM players, has also warned communication minister A Raja and the DoT to ���refrain from allocating any GSM spectrum (to the new entrants) without following the principle of first-come first-served based on date of application. The COAI has also added that any such move by the DoT would be in ���utter disregard of the pending adjudications in TDSAT/Delhi High Court���.

Both Idea and Spice had already approached the telecom tribunal ��� TDSAT ��� earlier over the issue. However, the tribunal had refused to pass an interim order during the last hearing in December 2007 as the solicitor general, who was the DoT���s representative, had said that spectrum was not being allocated at present, as the defence forces were yet to release it, while also adding that the ���manner in which spectrum is to be allocated was still under consideration���.

���At the same time, the tribunal ruled that if any urgent need arises the petitioners will be free to approach it. Since DoT is ready to issued licences and start-up spectrum, both Idea and Spice have moved an urgent application in the TDSAT against the illicit actions by the DoT,��� a source told ET.