Sunday 1 May 2011

Idea moves TDSAT against DoT notice

NEW DELHI: Idea Cellular approached the sectoral tribunal TDSAT against a DoT notice to cancel its licence in Punjab for violating merger and acquisition (M&A) norms.

On April 21, the DoT issued a show cause notice to Idea as to why its licence for the Punjab circle should not be cancelled on violation of M&A norms. The company has also been slapped with Liquidated Damages (LD) for not rolling out its services as per the norms in the same circle.

Idea has, thus, contended that DoT can't issue a show cause notice for cancellation of UASL while it asks the company to pay LD for failure to roll out its services.

DoT has countered this argument, saying that demanding LD for failure to roll out services from an existing licensee is a separate matter from the SCN for violating the terms of UASL (Unified Access Service Licence).

As per the terms, a licensee is not allowed to merge or amalgamate with any other company for the first three years.

Source: timesofindia.indiatimes.com

No comments:

Post a Comment