Indian telcos demand 3G fee refund

MSN says.

The Telecom Department's regulatory and enforcement cell, however, refuses to recognise such a pact as legal and binding. In fact, it considers it downright illegal.

Corporate honchos heading the companies in question have written about the matter to PM Manmohan Singh and sent a copy of the same letter to communications minister Kapil Sibal. The leaders are asking for a refund of the initial licence fees they paid, along with interest and compensation of the capital investments made by them, if their agreement is indeed considered illegal.

The CEOs said the government is reneging on its promises made through the technology-neutral licence and the 2008 licence amendment and the Q&A confirmations provided before the 3G auctions, The Hindu Business Line reports.

"Any suggestion that existing 3G intra-circle roaming agreement is akin to spectrum sharing is, to say the least, misleading. Even the DoT, in its recent communication to TRAI, has clearly stated that 'intra service area roaming in 3G network where one of the operators does not have 3G spectrum shall not be treated as spectrum sharing'," the letter said.

"We also submit most respectfully that, in the event that 3G intra-circle roaming is now deemed impermissible, then it would be a clear breach of our contract and the pre-auction confirmation given by the government, The Times of India notes.

"In that eventually, we request that our spectrum auction payments be refunded to us with interest (as) compensation for all the capital investment made by us."