SSTL asks for temporary licence from DoT to continue operations
SSTL makes another attempt at avoiding shutting down of its operations in India.
Sistema Shyam Teleservices (SSTL), which operates in India under the MTS brand name, has requested the Department of Telecommunications (DoT) to provide a temporary licence in a bid to continue its operations in the country until the next round of spectrum auction, slated to be held in March.
If approved, SSTL will be able to prevent its operations from shutting down following the Supreme Court order that said the companies, whose permits were revoked by the court and have failed to get new 2G spectrum licence in the recent auction, will have to cease their operations immediately. SSTL hadn’t participated in the November auction.
In its letter to the DoT secretary, SSTL wrote: “In the event of any negative order from Supreme Court, we would request you to issue us temporary licenses till such time the auction process is completed and spectrum along with new licenses are issued to SSTL.”
According to the report, SSTL said the SC’s ruling on telcos wasn’t applicable to the company, and that a separate order should be issued. It added it was “desirous of participating in the upcoming auction”.
If SSTL loses the licence, about 12.6 million subscribers in 21 service areas will be hit.
The development comes shortly after Uninor shut down its operations, impacting about 1.8 million subscribers.
Separately, Telecom tribunal TDSAT has asked the government not to take any coercive action against SSTL in the “dispute over inclusion of certain charges while calculating revenue for payment of licence fee”, says Economic Times in its report.
According to report, TDSAT in its interm order has asked the company to provide financial bank guarantee equivalent to the amount sought by DoT in 15 circles within a week.
“Pending hearing on the interim prayer, it is directed that the respondent (DoT) will not take any coercive action for enforcement of its demand, however the petitioner (SSTL) will provide a bank guarantee within a week equivalent to the amount of demand in each circle, if the Financial Bank Guarantee to that extent is not subsisting in any circle,” said TDSAT member P K Rastogi.
Source: ZDnet, Economic Times