SC suspends Airtel’s 3G roaming arrangements in 7 circles

In a ruling that has major ramifications for India's telecom industry, the Supreme Court on Thursday directed Bharti Airtel not to add new customers for 3G services in seven circles where it does not own spectrum, but has roaming agreements with other operators.

India's biggest telecom company cannot now add subscribers in Kolkata, Uttar Pradesh (East), Haryana, Maharashtra, Madhya Pradesh, Gujarat and Kerala. The order, however, will not impact the company's existing customers, the apex court said.

At the same time, the apex court has waived the Rs350 crore fine imposed by the Department of Telecommunications (DoT) for offering 3G roaming services where it does not have its own spectrum.

''There are hundreds, thousands and millions of customers. Rickshaw-wallas are also using mobiles. We don't wish to affect them,'' a bench comprising Chief Justice Altamas Kabir and Justice Vikramajit Sen said while passing the interim order on a petition by Airtel challenging an earlier high court order to the same effect.

Airtel has been accused by the Department of Telecommunication (DoT) and Reliance Communications (RCom) of illegally providing 3G services to customers in the seven circles.

The DoT, an arm of the telecom ministry, had on 15 March issued a notification restraining Bharti Airtel from providing 3G intra-circle roaming facilities in seven circles where it did not have the spectrum and also levied penalty of Rs350 crore (Rs50 crore per circle) for allegedly violating licence terms and conditions.

The bench issued notices to the Centre, the DoT and RCom and sought their responses within two weeks.  Thereafter, the respondents will need to file rejoinder within two weeks, the bench said, posting the matter for hearing on 9 May.

The bench allowed Vodafone and Idea Celluar, which have pacts with Airtel to provide intra-circle roaming services, to be made parties in the case.

It also allowed state-owned Bharat Sanchar Nigam Ltd (BSNL) to implead itself in the matter and gave it permission to file its application.

Solicitor general Mohan Parasaran and additional solicitor general Paras Kuhat, appearing for the BSNL and the union government, respectively, defended the DoT notification holding Bharti's 3G roaming pacts illegal.

Advocate Mukul Rohatgi, appearing for RCom, said Airtel has illegal tie-ups with Vodafone and Idea Cellular. ''The illegality committed by Airtel for three years cannot be allowed to be perpetuated,'' he said.

Advocate Abhishek Manu Singhvi, appearing for Airtel, contended that Bharti Airtel was well within its rights to enter such a roaming arrangement to provide 3G services.