Based on the CAGs report on the Telecom 2G spectrum scam, the Telecom Regulatory Authority of India (TRAI) has asked the government of India to cancel 62 licenses given to telecom companies which includes Aircel, Videocon, Etisalat etc.
The Six Operators are Videocon (6 circles), Etisalat DB(15 Circles), Uninor(8 circles), Loop(20 circles), Sistema-Shyam (11 Circles)..
India's telecom sector – the second-largest and fastest-growing in the world – has been dogged by allegations of favoritism and manipulation after a government auditor Tuesday condemned the ministry's allocation of mobile telephone spectrum, saying it cost the government $38.9 billion in potential revenue.
"We have reviewed about 127 licenses and have recommended that some licenses may be cancelled on the ground that either they have not rolled out (mobile phone) services or for improper roll out of services, so that the spectrum can be utilized," a senior official at TRAI told Dow Jones Newswires.
TRAI secretary R.K. Arnold confirmed the TRAI proposals, but didn't elaborate.The regulator's recommendations follow a clause in the telecom licensing conditions that obligates new telecom operators to roll out services in metro areas of Chennai, Delhi, Mumbai and Kolkata within one year of being allocated bandwidth.
In non-metro service areas companies have to ensure that in the first phase of their roll out, they cover at least 10% of district headquarters where bandwidth has been allocated within one year. This extends to 50% within three years.Unitech Wireless Ltd., a joint venture between India's real estate developer Unitech Ltd., and Telenor ASA, provides cellular services under the Uninor brand name in 13 service areas of the 22 service areas in which it received licenses. It had 13.75 million users at the end of October."We have not received any information from TRAI regarding our license in India. Therefore, we can't comment on this matter," Uninor said in an emailed statement.
"However, Uninor has launched its services across India...and are a real operator," it said.
Sistema Shyam is 73.71% owned by Russia's Sistema JSFC, with India's Shyam Group holding a stake of about 23.79%. It provides mobile telephone services under the MTS brand in 12 of India's 22 telecom service areas using code division multiple access technology, according to the regulator's website. It has licenses to offer services in all 22 areas."The company [Sistema Shyam] has complied with all its roll out obligations in all the 22 telecom circles and has already secured over 7 million voice subscribers and over 300,000 data customers," a Sistema Shyam spokesperson wrote in an emailed statement.
Loop Telecom--with just over 3 million users--and Videocon Telecommunications Ltd., a unit of diversified Videocon Industries Ltd., with 5.6 million users, have licenses to offer services across the country, but provide services in seven and 16 service areas respectively.