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TRAI Says No Refund For Cancelled Licences

By Reuters

  • 27 Mar 2012

The Telecom Regulatory Authority of India (TRAI) plans to recommend that carriers be denied a refund of their licence fees if they lose or surrender permits, in a further blow to companies whose licences are set to be revoked after a court order.

The Supreme Court has ordered the withdrawal of 122 zonal telecoms licences awarded to eight carriers in a scandal-tainted 2008 sale. It has asked the government to reoffer the licences and radio spectrum via an open auction.

Norway's state-backed Telenor is one of the eight carriers affected, but market leaders such as Bharti Airtel and UK-based Vodafone are poised to benefit from that ruling.

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Under current rules, one-time entry fees paid by operators when winning licences are "non-refundable". Some of the affected operators had suggested fees be refunded, or that they be offset against any payment due as a result of the upcoming auction.

In draft proposals released on Monday, the TRAI said it plans to recommend to the government that the entry fee remains non-refundable.

The government last year asked the regulator to give its proposals on an "exit policy" for carriers that want to quit operations.

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The regulator said on Monday it would recommend to the government there was no need for a separate "exit policy" and to continue with rules that allow a telecom licensee to surrender licences by giving notice of at least 60 days.

The regulator's recommendations are not binding on the government.

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