The Indian telecom sector is again in the news for the wrong reasons after a national daily reported about a “3G roaming scam” wherein some telecom operators are “offering 3G services and earning money from areas which they never bid during the 3G auctions.”
“Roaming arrangements were to provide seamless connectivity for cell phone subscribers as they travelled from one telecom circle to another on a temporary basis. However, a few telecom companies appear to be exploiting this to provide full-time service, causing a loss to the public exchequer as well as upsetting the level playing field for rolling out 3G services,” reported English-language newspaper DNA.
The DNA report reveals that the Telecom Regulatory Authority of India (TRAI) has written to Department of Telecom (DoT) Secretary R Chandrashekhar about the issue. TRAI’s letter follows its probe, which established that 3G roaming agreements between telcos violated license conditions, reported the Economic Times.
“The regulator did not initiate action after mobile phone companies had explained to it that that the telecom department, prior to the 3G auctions, had clearly specified that ‘roaming policy is applicable to licences and not specific to spectrum bands.’ In their defense, these telcos had also provided copies of the clarifications provided by the department on this issue before the 3G auctions. The clarifications quote the DoT’s response to operators’ queries on this issue as stating that ‘roaming will be permitted’,” the ET report stated.
Only government-owned MTNL and BSNL have acquired pan-India license for offering 3G services. Private telecom players like Bharti Airtel, Idea Cellular, Vodafone, Reliance Telecom, Tata Teleservices and Aircel only bid for selective circles and got license where they bid the highest. Some of these private players were entering into 3G roaming deals with each other and offering services in areas for which they have not paid any license fees.
According to TRAI, Bharti Airtel, Idea Cellular and Vodafone have entered into such a 3G roaming deals. Aircel sealed such a deal with Tata Teleservices and is offering 3G services in areas where it has no 3G license to operate.
The telecom department’s access services wing has also asked the DoT to impose penalties on the offending telecom companies.
“A UAS licensee cannot offer 3G services and declare tariff plans for 3G services in (areas) where he has neither been allocated 3G spectrum nor has his licence been amended for commercial use of 3G spectrum,” the access services wing stated in a note.
This is not the first controversy to hit the country post-2G spectrum scandal. In July, news portal Firstpost reported that Telecom Minister Kapil Sibal saved Reliance Communications from a heavy penalty after the company latter violated its contract of providing mobile services in rural areas.
On top of all these, the Economic Times stated that six top executives of some mobile phone companies are looking for new jobs. Signaling this as a bad time for the scam-ridden sector, the media report quoted a promoter of one of the largest mobile phone companies as saying that “India’s telecom story is over. Industry revenues have not gone up in two years.”
“Most companies are battling high debt and stagnant revenues. Banks have refused to lend. 3G is making very slow progress. Many top executives are looking at changing sectors,” the ET report quotes another chief executive of the mobile phone company as saying.
