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Friday 15 March 2013

DoT asks Bharti to stop 3G services in 7 circles

Telco moves Delhi High Court against order; Vodafone expected to get notice too


The department of telecommunications (DoT) today asked Bharti Airtel to stop 3G services within three days in the seven circles it does not have the required licences.

Bharti had filed a petition against the decision in the Delhi High Court. The hearing is scheduled on Monday.

Bharti was offering these services in seven circles, where it does not have 3G spectrum, by signing intra-circle agreements with Vodafone and Idea Cellular. Bharti has also been asked to pay a penalty of Rs 50 crore per circle.

The seven circles are Haryana, Maharashtra, UP (East), Kolkata, Gujarat, Kerala and Madhya Pradesh

Bharti has 6.8 million 3G customers across the country (5.2 million are active). Industry experts said about 30 per cent of these subscribers might be impacted.

The telecom company offers 3G services in 13 more circles, where it has bought spectrum in the 3G auction. Subscribers in these circles will not be hit by the order.

The company declined to comment on the notice. Vodafone India said it had not received any notice. Idea Cellular already has a stay from the Delhi High Court against the stopping of 3G services through the intra-circle agreements.

The composite notice to Bharti has directed the telco to stop the provisioning and selling of 3G services to existing and new customers within these seven circles, and to provide confirmation of having stopped the service to DoT within three days.

The three telcos together have 12 million 3G subscribers. Of these, according to estimates, 30 per cent are in circles where the operator concerned does not have 3G spectrum.

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