Supreme Court refuses to stay spectrum auction

The Supreme Court has refused to interfere with the order of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) dismissing the pleas of Bharti Airtel, Vodafone, Loop and Idea seeking an extension of their licences by another 10 years and staying the spectrum auction which is starting tomorrow.

The SC's decision, pronounced at an extraordinary urgent hearing on Sunday, clears the way for the spectrum auction starting Monday.

While declining to stay the telecom department's spectrum auction, a bench comprising justices A R Dave and S A Bobde, however, admitted the appeals filed by Airtel and Vodafone challenging the 31 January order of the telecom tribunal.

The SC bench decided not to interefere with the bidding process after the government's appeal that ''any observation from you (apex court) can scare away other bidders and can take away the vibrancy of the spectrum auction''.

''The appeal is admitted and hearing is expedited,'' the bench said.

Appearing for Airtel and Vodafone, respectively, senior advocates Mukul Rohatgi and Abhishekh Singhvi contended that their existing spectrum licences should be extended instead of auctioning them again.

Since the court refused to stay the auction, Rohatgi submitted that the telecom department should be told to withhold the auction results till the appeals are heard and disposed off.

Singhvi, on the other hand contended that Vodafone had licence for 20 years since 1994, so it has a right over the spectrum and the licence should be extended for another 10 years.

The bench, however, observed that ''it does not mean that you should have a monopoly''.

The telecom companies argued that considering their huge investments, the denial of an extension of the licences would be ''illegal and unreasonable,'' and that this in turn would also result in the discontinuance of service to its subscribers.

TDSAT had rejected their plea saying ''the petitioners have failed to establish their right for extension in terms of the relevant provisions in their licences, the matter ends there''.

''Denial of extension of the licences to the petitioners is based on good reasons as envisaged under clause 4.1 of the UAS licence and the relevant provision in the CMTS licence and the petitioners can claim no right for extension of their licences under the aforesaid provisions of their licences,'' TDSAT had said in its order.

Vodafone and Bharti Airtel are participating in the coming auction and are short-listed as eligible bidders. Their licences are expiring by November end this year on completion of the 20-year period as per licence conditions.