Videocon Telecommunications, Etisalat DB move TDSAT against DoT to revise guarantees

NEW DELHI: Videocon Telecommunications and Etisalat DB today approached telecom tribunal TDSAT, seeking revision of financial bank guarantees (FBGs) given to the Department of Telecom ( DoT) at the time of spectrum allotment.

Admitting the petitions of the two operators, the Telecom Disputes Settlement and Appellate Tribunal issued notices to DoT, asking it to file reply within two weeks.

It has directed the government not to take any coercive action against Videocon and Etisalat till further orders.

During the proceedings, counsels appearing for Videocon and Etisalat contended that as per the UASL terms and conditions, their FBG should be revised.

The two have contended that as per the clause 21.2 of UASL licence conditions, as they have already paid licence fee for the two quarters to DoT and their FBGs should be revised.

Etisalat, which has been given spectrum in 15 circles has deposited Rs 530 crore as FBG.

Senior advocate Ramji Srinivasan, appearing for the company, submitted that the FBG given to DoT was going to lapse in December and it has not been revised yet despite several reminders.

The tribunal has directed to list both the matters on December 8 for next hearing.