Categories: India, News, Policy

India cancels 122 2G licenses

Justice

The Supreme Court of India on Thursday cancelled 122 2G spectrum licenses controversially handed out by former Telecom Minister A Raja in 2008.

While delivering three important judgments in the 2G case, Justices G S Singhvi and A K Ganguly stated that there was no need for a Special Investigation Team to monitor the 2G scam probe. The court said the Central Bureau of Investigation, which is probing the case, would submit its report on the 2G scam probe to the Central Vigilance Commission (CVC). The CVC would examine the CBI report and give its report to the Supreme Court in a sealed cover, the apex court stated.

As for then-Finance Minister and current Home Minister P Chidambaram, the apex court left it to the trial court to decide whether he should be probed in the 2G scam.

The apex court’s decision affects 11 telecom companies with a combined market share – in terms of active subscriber base – of 5% or less. The impacted companies include Spice (four licenses), Uninor (22 licenses), Loop Telecom (21 licenses), Idea (nine licenses), Videocon (21 licenses), Swan Telecom (13 licenses), Tata Teleservices (three licenses), Sistema Shyam (21 licenses) and STel (six licenses) among others.

The court verdict has also affected the stocks of companies whose licenses have been cancelled. While the stocks of Unitech and DB Realty dropped, the older telecom players like Bharti Airtel benefitted.

Meanwhile, the Indian telecom regulator said that it will first study the entire judgement before outlining its impact on the customers.

6 Responses to “India cancels 122 2G licenses”

Trackbacks/Pingbacks

  1. [...] Thursday’s verdict, which cancelled 122 2G licenses, states that the telecom companies whose licenses stand to be cancelled can buy the spectrum at market price if they want to continue using that spectrum. The Supreme Court has given the telecom regulator four months to look into the matter and make recommendations for fresh auctions, a news report stated. This  may lead to consolidation in the Indian telecom sector as some of the existing players whose licenses have been cancelled may not participate in these 2G auctions. [...]

  2. [...] The Telecom Regulatory Authority of India (TRAI) released a pre-consultation paper on “Allocation of Spectrum in 2G band in 22 Service Areas by auction” following the Supreme Court of India’s order cancelling 122 2G licenses. [...]

  3. [...] The Indian Supreme Court earlier this month ordered the cancellation of 122 licenses granted in 2008 following a drawn-out investigation into corrupt practices surrounding the granting of the licenses. The current licenses will remain in place for four months, the court ruled. [...]

  4. [...] commenting on the recent verdict of the Supreme Court in which it cancelled 122 2G licenses, a company executive said it would lead to rationalization in the sector in terms of number of [...]

  5. [...] Supreme Court of India on February 2 had revoked 122 licenses issued to all telecom operators on and from January 10, 2008. This included all licenses issued to [...]

  6. [...] number of subscribers in the month of January. The company, embroiled in the 2G case with its 22 licenses cancelled, added 2.49 million new users in January. The total subscriber base of the company not stands at [...]


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