TDSAT approves intra-circle 3G roaming pacts, quashes DoT penalty

Advertisement
By Reuters | Updated: 5 May 2014 12:11 IST
The telecoms tribunal has overturned a government ban on pacts between carriers that allow them to provide 3G services beyond their licensed zones - a decision that will help the firms expand high-speed data services faster and cut their capital expenditure.

The cost of purchasing 3G airwaves in a 2010 auction was so high that no single carrier won a nationwide permit. Bharti Airtel Ltd, Vodafone and Idea Cellular Ltd, currently the country's top three carriers, entered into pacts with each other to provide 3G services beyond their licensed zones.

The telecoms ministry then banned the pacts, saying they enabled the companies to offer 3G services without buying permits.

Advertisement

The reasoning behind the tribunal's decision was not immediately known. A detailed judgement is expected later on Tuesday. In 2012, it had given a split verdict on an appeal by the carriers and last year the Supreme Court asked the companies to not add new 3G customers as the case continued.

"We are very pleased with ruling," said Rajan Mathews, director general of the Cellular Operators Association of India.

Advertisement

"Now that the legal matter has been cleared up, we are hoping that the government will allow us to go forward on this without any appeal to the Supreme Court or anything."

The telecoms ministry will make a decision on whether to challenge the decision in the Supreme Courtafter analysing the tribunal's order, Maneesha Dhir, a lawyer for the government, told Reuters.

Advertisement

India's telecoms carriers began launching 3G in 2011 and the premium services currently account for about 4 percent of their revenue. But 3G revenue is growing more than 70 percent annually, much faster than the dominant voice services, according to Naveen Kulkarni, a telecoms analyst at PhillipCapital.

"This is a significant long-term positive, helps in faster data growth and also reduces the long-term capex requirement," he said.

Advertisement

Telecoms stocks showed little reaction to the tribunal's ruling. Bharti shares were little changed. Idea's shares were up about 1 percent by 12:37 p.m. in a Mumbai market that was down 0.3 percent.

© Thomson Reuters 2014

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. OnePlus Turbo 6X, OnePlus Turbo 6X Pro Key Specifications Teased
  2. Tecno Pova 8 to Launch in India With 8,000mAh Battery on This Day
  3. From iOS 27 to Revamped Siri, What to Expect from WWDC 2026
  4. Xiaomi Pad 8 Price Increased: Here's How Much It Costs Now
  1. Sahara Meteorite May Be Fragment of a Lost Moon-Sized World, Study Suggests
  2. OpenAI Introduces Smarter ChatGPT Memory, Adds Dreaming Architecture
  3. Tecno Pova 8 India Launch Date Announced; Battery Size, Design, Colour Options Teased
  4. Samsung Reportedly Starts Internal Testing of Android 17-Based One UI 9 for Galaxy S25 Series
  5. Bybit Lists Western Union’s USDPT Stablecoin for Trading and Transfers
  6. Xiaomi Pad 8 Price Hiked in India: Here’s How Much It Costs Now
  7. Instagram Reels Influencing Nearly Half of Purchase Decisions in India, Meta Study Claims
  8. OnePlus Turbo 6X, OnePlus Turbo 6X Pro Colour Options, Price Range, Key Specifications Teased
  9. Sattendru Maarudhu Vaanilai Now Streaming Online: Where to Watch Jai’s Romantic Thriller Movie
  10. Asics GEL-Kayano 33 Launched in India With New Stability Tech, FluidSupport System
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.