DoT to SC: 3G roaming pacts undermined goals of auction

In the affidavit submitted in response to the court’s notice,the DoT said the 3G auction,which was done in a transparent manner and with certain objectives in mind,provided for auction of 3G spectrum service area-wise and that in each service area,a particular number of blocks of spectrum were auctioned.

It added that the terms and conditions of the auction made it amply clear that successful bidder would require a separate licence (in the case of new entrants) or an amendment to the existing licence (for providers already holding a UAS licence) in order to provide the 3G services.

“The instant special leave petition seeks to undermine the objectives of the 3G auction by seeking that parties,who have not been successful in the auction,also can provide 3G services in those circles without any valid licence to do so,” contended the DoT.

The regulator alleged that Airtel was acting as a “Mobile Virtual Network Operator” by enetering into ‘roaming arrangements’ for providing 3G services without holding a 3G licence or spectrum.

The affidavit also refuted Airtel’s claims that an order to stop such services could affect millions of its subscribers,who have been getting 3G services for last two-and-a-half years.

It said that consumers’ interest will not be affected at all if Bharti was restrained from offering such services in these seven circles pending the adjudication of the order passed by the DoT on March 15,whereby it was asked to stop offering 3G roaming within 72 hours. “Such consumers are in fact receiving such services from networks established by service providers,who have been successful in the auction for 3G spectrum in those service areas. Further,on account of Mobile Number Portability,the consumers can port to (transfer to) any service provider that has a valid licence to offer 3G services in that service area,” DoT said.

On March 11,the court had prohibited Bharti Airtel from adding new 3G customers in the seven circles.

However,the interim order did not bar it from continuing 3G intra-circle roaming and other facilities to existing customers. The court also asked the DoT not to take coercive steps against Airtel,which was asked to pay Rs 350 crore as penalty for violating norms.

‘AGAINST NORMS’

* DoT in its affidavit has said that the terms and conditions of the 3G auction made it clear that a separate licence was needed to provide the services

* DoT has also alleged Airtel of acting as a ‘Mobile Virtual Network Operator’ by entering into roaming arrangements for 3G services without having a licence