Qualcomm, an American based communications company, may be at risk of losing its mobile broadband licences in India. As per reports, Qualcomm was required to submit its application for an ISP licence within three months of the conclusion of the BWA (broadband wireless access) auction in June 2010. However the Department of Telecom (DoT) has claimed it did not receive Qualcomm’s paperwork until December 2010.

Although Qualcomm had spent more than $ 1 billion to acquire four BWA licences in the auction in 2010, the DoT has warned the company that its entire investment will be relinquished if its permits are cancelled.

Qualcomm has responded saying that the DoT did not make its request for the application until November 2010, following which Qualcomm sent its reply the following month. As per reports the company said that they have followed all the stipulated rules in both letter and spirit and that the DoT should grant them a licence immediately so that they can execute their plans of empowering India and its consumers with broadband connectivity.

 

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BSNL, a leading public sector units providing comprehensive range of telecom services in India, may scrap its tender for 15 million GSM lines owing to the poor response from private vendors.

As per reports, a Department of Telecom official has said that the 15 million GSM tender floated by state-run BSNL is likely to be scrapped as only two or three private vendors have shown interest in the e-tender process.

Sources claim that the 15 million GSM line tender is estimated to be worth around $ 1.03– 1.23 billion. However, reports suggest that BSNL CMD R K Upadhyay has said that as of now, there is no such plan to scrap the tender and that the process is evolving.

 

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Telecom Regularity Authority of India (TRAI) recommended that 69 licenses should be cancelled owing to failure of telecom operators to meet rollout obligations, of which the Department of Telecomm (DOT) has cancelled only 8 licences. As per reports, only Aircel (two), Dishnet (three), Etisalat (two), and Sistema Shyam (one) were issued show-cause notices for cancellation of licences.

However, sources claim that since the majority of the company’s licenses remain intact, the impact on their business will be negligible. Further, this move will not really affect consumers either as the violation signifies lack of network, and thus subscribers.

 

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The government has stated that it will be be sending show-cause notice to Idea Cellular asking the telecom operator why its licence of five circles should not be cancelled.

According to Department of Telecom (DoT) Secretary R Chandrashekhar, they will send Idea showcause notice in five circles for overlapping licences.

Idea Cellular in 2008 picked up 41.09% stake in Spice, resulting in an overlapping situation in which both the companies held licences in six circles.

The company had stated that it has not breached any condition of the licence agreement. It stated that it had written 20 letters to the DoT over the past 30 months but had failed to get any response from the government.

 

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The Indian telecommunication ministry will reportedly be sending a demand notice to Bharti Group to recover pending dues arising out of alleged under-reporting of revenues for the years 2006-2007 and 2007-2008.

The Department of Telecommunication (DoT) has prepared a draft demand notice, which has been sent for legal vetting. A special audit of the accounts of Bharti Airtel and its allied group of companies for 2006-2007 and 2007-2008 was conducted by the DoT to verify whether proper Adjusted Gross Revenue (AGR) statements were submitted and the licence fee there on was paid correctly.

The auditor had more than a year ago submitted a report more than a year ago and pointed out some discrepancies in the account statements, with a few of them under dispute in telecommunication tribunal TDSAT.

The DoT conducted a similar audit for Vodafone-Essar, RCom, Idea Cellular and Tata Teleservices. All the auditors have submitted reports and similar action is being contemplated against all the companies. According to sources, the special audit had revealed about US$22.29 million pending from Bharti Group.

The Telecom Ministry has stated that it will decide in a month’s time on cancellation of licenses given by former Telecom Minister A Raja in 2008 to allegedly ineligible firms.

According to Telecom Secretary R Chandrasekhar, they have received replies from all 85 license holders who were issued showcause notices. They are legally examining them and should be able to take a decision on it in a month’s time. He categorically denied that any license has been cancelled so far.

He added that the Telecom Ministry has issued notices to firms on two issues — ineligibility to get licenses and missing roll-out obligations within the stipulated timeframe; the process to send notices would be completed within a week.

As per the DoT officials, DoT has to give 60 days to the operators to file their response to the showcause notice for cancellation of licenses. In certain cases, 60 days are over while in some, there is till some time.

The matter is being examined by various investigating agencies and also a parliamentary panel.Notices have been issued to Swan Telecom (now Etisalat DB), Datacom (now Videocon Telecom), S Tel, Uninor and others, either due to ineligibility or for missing roll out obligations.

In its reply to the Public Accounts Committee, headed by BJP leader Murli Manohar Joshi, the DoT again rejected the allegation of any notional loss due to the issuance of 122 new licences in 2008 . He stated that the premium placed on the scarce resource from the perspective of a producer need not necessarily translate into a loss when seen from the view point of the consumer and public welfare.

According to DoT, the concept of notional loss when spectrum is given at a price discovered few years earlier has to be balanced with the gains accruing to the consumers and the general improvement in public welfare in the form of faster economic growth.

The PAC had sent 40 questions to the DoT related to the 2G spectrum scam.

Suggesting that the notional loss reported by the audit report should be seen in light of the benefit that it has given to consumers and general public welfare in the form of quick economic growth, the DoT stated that the objectives of the Telecom Policy since 1999 was to increase teledensity and affordability for consumers, while maintaining a level playing field between incumbents and new players as well as revenue accrual for the government.

TRAI has stated that it will soon be announcing new date for implementation of new telemarketing guidelines.

According to Telecom Regulatory Authority of India (TRAI) Chairman J S Sarma, DoT (Department of Telecom) should be able to take a decision in about 15-days.

TRAI, which was supposed to implement the guidelines by March 21, had postponed it without giving a new date.

According to the telecom watchdog, the implementation is getting delayed as DoT is yet to submit a series of landline numbers to it which will make it difficult for telemarketers to operate from mobile networks.

The new regulation, which calls for restricting unwanted calls and imposition of steep penalties on offenders, was first supposed to be implemented from January 1 this year but has been delayed thrice till now.

Sarma also stated that TRAI will issue a discussion paper on the 4G mobile services in a couple of months. They expect to complete the recommendations made on equipment manufacturing, green telecommunications as well as infrastructure policies by month end after which they will take up 4G. Along with 4G, TRAI will also be holding discussions on other subjects like IUC charges and reforming and liberalization of spectrum.

The Department of Telecommunications (DoT) is considering to ask voice over internet protocol (VoIP) service providers like Google and Skype to devise a decryption solution of their services.

The move, if implemented, will mean that the government will be able to track emails sent through Gmail as well as intercept voice calls made through Skype.

In an internal meeting with DoT, officials from the Ministry of Home Affairs (MHA) has told the telecom department that Google and Skype need to provide decryption of their services whenever required by the security agencies for lawful interception.

According to the DoT internal note, there was also a need to bring some parity between the Information Technology (IT) Act and the Indian Telegraph Act-1885 to deal with interception and monitoring.

A Google spokesperson stated that they have not been contacted by the government yet on this issue and thereby, they are unable to comment.

During the meeting, DoT stated that such issues may be taken up at international forums such as ITU, WTO and United Nations wherein service providers are mandated to take permission from member countries before launching new services.

The note further stated that the legal protection for business entities may have to be strengthened against consumer protection or any civilian Act, where business secrets are disclosed to government agencies due to security considerations.

Intelligence Bureau (IB) will also prepare a list of issues faced by them while monitoring services and will be jointly addressed by the department of telecom and IT.

The interception/monitoring issue cropped up after security agencies expressed concerns about intercepting highly encrypted services such as BlackBerry amongst others.

The Supreme Court has asked the telecom tribunal TDSAT to decide the plea of Aditya Birla group firm Idea Cellular against DoT to issue it 3G spectrum in Punjab where the allocation has been pending because of Idea’s merger with Spice Telecom.

A bench comprising Justices G S Singhvi and A K Ganguly asked the Telecom Disputes Settlement and Appellate Tribunal to take a decision on the plea of Idea.

As per the bench, it is related with 3G spectrum allocation and it should be dealt with separately.

The TDSAT had stopped hearing after the Attorney General had mentioned before the Tribunal that the Supreme Court had restrained all courts from passing any order on allocation of spectrum.

Following that, Idea had approached the Supreme Court seeking its clarification on the issue.

India’s telecom regulator Department of Telecom (DoT) has revealed that Google’s Gmail and email services running on BlackBerry among 15 communication services cannot be tracked. It stated that the only option for this is to build capabilities of intelligence agencies to monitor and intercept these technologies.

According to reports citing DoT, monitoring and interception in most countries is carried out by security agencies on their own and the role of mobile operators is limited to providing feedback.

The department’s stance is in contrast to that of the home ministry, which has put the onus on mobile operators to prove that all services and facilities on their networks can be tracked on a real-time basis.

It added that the ultimate solution to deal with the problem of intercepting encrypted communication, which uses internet, is that the security agencies build capabilities of decrypting the intercepted communication. The home ministry must now decide if India should ban such communications or live with them.

Among the services listed by the DoT were video chats, internet telephony calls, mails on Motorola, Nokia and handsets running Windows Mobile.

DoT further stated that mobile phones companies cannot introduce encryption on their own, nor were they supposed to know the contents of data flowing on their networks, thus throwing the ball in the home ministry’s court.

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