Telcos brace for legal battle

NEWDELHI: The Telecom Regulatory Authority of India (TRAI) is not bound by any time frame to submit its recommendations, on allocation of spectrum in 2G band in 22 services areas, by auction.

This was clarified by the regulator to many operators who had sought clarification, if Trai is bound to give its recommendations within a month. A senior official in TRAI confirmed to Express, “There is no time frame in the Supreme Court order.”

TRAI will receive comments and suggestions on the allocation of spectrum in 2G band in 22 services areas by auction, till February 15, 2012. “Keeping in view the time bound nature of exercise, no extension of time will be given,” states a Trai notification released on Friday.

But, the legal eagles representing the eight telecom operators have suggested them to go for a review petition. Especially, in view of the unspecified time limit for TRAI, to make its recommendation. “If the recommendations are delayed, which is a possibility, for more than four months, then, the licences would stand cancelled,” says Uma Shankar a senior Supreme Court lawyer.

This has made a number of operators like Uninor, Loop, Etisalat DB and Idea to seek a review from the Supreme Court.  

“Most of us are planning to file a review petition before Tuesday,” said an executive of Uninor. The realisation, that TRAI is not bound to give its recommendations within two months has come as a shock for the eight telcos.

Ramesh K Vaidyanathan, Partner, Advaya Legal, says, “It is a genuine concern, and operators will do well to seek a review.” The same sentiments were echoed by Ramji Srinivasan, a senior Supreme Court lawyer. “There is enough ground for affected parties to seek a review in this case,” said Srinivasan.