The Supreme Court on Monday extended till 4 February the 18 January deadline for existing operators of 2G spectrum to carry out operations and asked the Centre to spell out the price to be charged for continuing with their service after cancellation of licences last year.
'We want to know what is the price. Just put it in a sealed envelope what is the amount to be paid (by the existing operators of 2G) after our order of 2 February 2012,' a bench comprising justices G S Singhvi and K S Radhakrishnan said while posting the matter for hearing on 4 February. 'The existing operators are allowed to continue operations till the next date of hearing,' the bench further said.
The apex court had on 2 February last year cancelled 122 licences for the 2G spectrum and had directed the Department of Telecom (DoT) to hold fresh auction for them within four months which has been extended by interim orders from time to time. The bench asked DoT's counsel and senior advocate P P Rao to collect information about the telecom companies which emerged as sucessful bidder in the first round of auction that took place on 12 to 14 November last year and what is going to be the proposed reserve or base price for second round of auction to be held on 11 March.
It also wanted to know from the DoT as to how many operators whose licences were cancelled by it on 2 February 2012, participated in the fresh auction and how many of them continued with their operation.
'How many licencees stopped operation and secondly you have to find out what decision you have taken to fix price for future auction,' the bench told Rao.
The court also said it has to be made clear whether those existing operators who did not participate in the auction would be allowed to continue or not. During the hearing, the bench observed that the telecom operators enjoyed the benefit of its order to continue with operations till the fresh auction and they are liable to pay the reserved price after 18 January 2013.
The court also said the decision to reduce the bidding price after the first round of auction for spectrum is bound to evoke further litigation.
'The price in the first round of auction was different and now you are reducing the the price in the second round of auction (to be held on 11 March) which is bound to generate litigation,' the bench said but added that 'we are not concerned with litigation'.
Prashant Bhushan, appearing for the NGO, Centre for Public Interest Litigation (CPIL), which was one of the PIL petitioners on whose plea the licences of 2G were cancelled, said existing operators should not be allowed to continue as the consumers have the option to move to other service providers.
Senior advocate Harish Salve, appearing for some telecom companies, said the base price fixed for auction was not conducive for many to participate in the bidding process and as such the CDMA operators like Tata opted out and Sistema Shyam Teleservice Ltd also did not participate in the auction because of pricing model.
The Centre had asked the Court to consider allowing the telecom operators, whose 2G licences were cancelled last year, to continue to operate after the 18 January deadline with a condition that they 'will be liable to pay' for the spectrum as per the proposed price of the upcoming auction scheduled on 11 March. The Department of Telecom had apprised its stand in an affidavit which assumes importance as the court had permitted the telecom operators to continue to operate till 18 January this year.
'We want to know what is the price. Just put it in a sealed envelope what is the amount to be paid (by the existing operators of 2G) after our order of 2 February 2012,' a bench comprising justices G S Singhvi and K S Radhakrishnan said while posting the matter for hearing on 4 February. 'The existing operators are allowed to continue operations till the next date of hearing,' the bench further said.
The apex court had on 2 February last year cancelled 122 licences for the 2G spectrum and had directed the Department of Telecom (DoT) to hold fresh auction for them within four months which has been extended by interim orders from time to time. The bench asked DoT's counsel and senior advocate P P Rao to collect information about the telecom companies which emerged as sucessful bidder in the first round of auction that took place on 12 to 14 November last year and what is going to be the proposed reserve or base price for second round of auction to be held on 11 March.
It also wanted to know from the DoT as to how many operators whose licences were cancelled by it on 2 February 2012, participated in the fresh auction and how many of them continued with their operation.
'How many licencees stopped operation and secondly you have to find out what decision you have taken to fix price for future auction,' the bench told Rao.
The court also said it has to be made clear whether those existing operators who did not participate in the auction would be allowed to continue or not. During the hearing, the bench observed that the telecom operators enjoyed the benefit of its order to continue with operations till the fresh auction and they are liable to pay the reserved price after 18 January 2013.
The court also said the decision to reduce the bidding price after the first round of auction for spectrum is bound to evoke further litigation.
'The price in the first round of auction was different and now you are reducing the the price in the second round of auction (to be held on 11 March) which is bound to generate litigation,' the bench said but added that 'we are not concerned with litigation'.
Prashant Bhushan, appearing for the NGO, Centre for Public Interest Litigation (CPIL), which was one of the PIL petitioners on whose plea the licences of 2G were cancelled, said existing operators should not be allowed to continue as the consumers have the option to move to other service providers.
Senior advocate Harish Salve, appearing for some telecom companies, said the base price fixed for auction was not conducive for many to participate in the bidding process and as such the CDMA operators like Tata opted out and Sistema Shyam Teleservice Ltd also did not participate in the auction because of pricing model.
The Centre had asked the Court to consider allowing the telecom operators, whose 2G licences were cancelled last year, to continue to operate after the 18 January deadline with a condition that they 'will be liable to pay' for the spectrum as per the proposed price of the upcoming auction scheduled on 11 March. The Department of Telecom had apprised its stand in an affidavit which assumes importance as the court had permitted the telecom operators to continue to operate till 18 January this year.