Don’t see much impact on customer for 2G license cancellations : TRAI

New Delhi: The Telecom Regulatory Authority of India, TRAI today said there will not be much impact on subscribers due to cancellation of 122 2G licenses of eight companies, as around 95 per cent of total subscribers belong to operators which got licences before January 2008. Speaking to press here today, TRAI Chairman J S Sarma said that subscribers have the option to port out
using mobile number portability. Sarma said that TRAI is yet to study the judgement and details can be given only after the regulator completes the study of court verdict.

The cancellations will affect the eight start-up operators that have launched their services in the interim period, including Telenor-backed Uninor, Tata Teleservices, Loop Telecom and Etisalat DB. Supreme court has allowed the to operate for only the next four months, by then they will have to sort out the issue with the Government.

Telenor and Etisalat DB will be the hardest hit. Telenor has lost 22 of its Indian licences, has a strained relation with local partner Uninor, Unitech Group. Last year of several of senior Unitech directors were arrested on allegations of fraud relating to the award of its licences. Telenor release said that it will study the order and react.

Etisalat DB statement said “The Supreme Court decision relates to events that occurred in January 2008, well before December 2008 when Etisalat invested in Swan. Etisalat has no knowledge of what occurred in the licence application process for Swan, far less did it have any involvement.”

Telecom Minister Kapil Sibal said today that the government will abide by the judgement that spectrum should be auctioned which, he said, the ministry has done by delinking spectrum from the licence in 2011 after he took over.