2G: Operators hit by SC order may have to end services by 2 June

The telecom operators whose licences were cancelled by the Supreme Court on 2 February will probably have to suspend operations from 2 June as directed by the court, as the government has decided not to approach the court seeking an extension of the deadline.

The apex court quashed 122 mobile permits allotted in 2008 by jailed former telecom minister A Raja, and had directed the government to issue fresh licences through auction within four months (See: SC cancels all 2G licences, orders fresh spectrum auction).

However, the government in its clarification petition has said that it would require a minimum of 400 days to carry out the auctions, implying that the process would not be completed before March 2013.

At the same time, the Telecom Regulatory Authority of India (TRAI) on Wednesday told mobile operators Etisalat DB and STel, whose licences have been cancelled, to continue offering services till 2 June. The two companies had announced shutting of their operations much ahead of the time specified by the court.

Etisalat on Wednesday said it would not entertain any request for payments by creditors or claimants, except those ordered by the court, as the Bombay High Court had adjourned the hearing on its winding-up petition to 18 April (See: Etisalat starts winding up proceedings of Etisalat DB Telecom).

''Etisalat DB confirms that this matter has been adjourned to 18 April for all claimants to file the particulars of their claim. Until then, no payment is to be made by the company to any creditor or claimant other than under the orders of the Court,'' a statement issued jointly by EDB and UAE-based Etisalat said.