The Hindu Business Line : No relief for GSM players

Reliance’s gain
DoT is now free to issue letters of intent to new players and allocate spectrum to companies such as Reliance Communication, which has already paid the entry fees.

Our Bureau

New Delhi, Dec 24 The Delhi High Court today refused to pass any order on the appeal filed by the GSM operators against the telecom tribunal’s decision to allow spectrum allocation to new players. The Cellular Operator’s Association of India had filed an appeal seeking a stay on the recently announced policy on dual technology and spectrum allocation.

“I can’t pass status quo order without going into the details. Let me go through the petition,” Mr Justice Sanjeev Khanna said while posting the matter for hearing on January 3, 2008. The High Court’s decision comes as a blow to the GSM operators as the Department of Telecom is now free to issue letters of intent to new players and allocate spectrum to companies such as Reliance Communication, which has already paid the entry fees.

Senior advocate Mr Ram Jethmalani, along with Mr Fali S. Nariman, appearing for COAI, contended in court that the policy decisions needed police inquiry and hence it required urgent hearing. The GSM operators had filed the petition seeking an immediate stay on the grounds that DoT could bring in new players without resolving their concerns regarding additional spectrum to existing operators. However DoT said that there was no urgency as COAI itself had chosen to appeal in High Court during vacation time despite the fact that the telecom tribunal had passed its order on December 12.

The COAI’s main contention is against DoT’s decision on October 18 to allow dual technology to Reliance Communication, which permitted the country’s largest CDMA operator to foray into the more lucrative GSM segment. Rival operators including RCom and Tata Teleservices have countered COAI’s legal moves as an attempt to block competition.