TDSAT Allows 3G Intra-Circle Roaming Services
TDSAT Allows 3G Intra-Circle Roaming Services
Telecom companies have achieved a victory through the landmark judgement allowing 3G intra-circle services for firms beyond their licensed zone. So far, 3G users had been plagued with problems such as lack of connectivity in areas where firms do not have license to operate. Allowing 3G intra-circle roaming services is a massive step for improving the reach of telco companies. This tribunal ruling is of huge benefit for Bharti Airtel, Idea and Vodafone, among others.
TDSAT, the telecom tribunal has also quashed the cumulative penalty of 1200 crore imposed by the Department of Telecommunications. TDSAT has allowed all the petitions. This ruling is of special benefit for the three leading companies in the fray. This is because the 3G ICR agreement between Airtel, Idea Cellular and Vodafone has been ruled as not violating license agreement.
Airtel, Ideal Cellular and Vodafone had consulted TDSAT because of this reason. The Department of Telecom had ordered the cessation of the intra-circle roaming agreement through which they had agreed to gain customers in areas where the spectrum had not been allocated to them. In the 2010 auction, all 3 companies had won the 3G spectrum. Airtel had been allocated the 3G spectrum in 13 of 22 telecom service areas. It has won the spectrum for around 12 crore that year. Vodafone had managed to acquire spectrum rights in 9 telecom service areas for 9 crore the same year.
Idea Cellular had acquired the spectrum for 5 crore for 11 telecom circles. All 3 companies had been asked by the Department of Telecom to stop 3G intra circle roaming in 24 orders and report their compliance. In a bid to overturn this, the telecom operators approached TDSAT. TATA Teleservices and Aircel had signed the 3G ICR agreement too, but they had withdrawn it in the face of a notice from DoT. Airtel had also sought access to the 3G network of Vodafone in four areas namely Kolkata, Haryana, UP East and Maharashtra.
Vodafone aimed to access Airtel’s six 3G circles namely Karnataka, Assam, Bihar, Rajasthan, North East and UP West. They also focused on 7 circles of Idea Cellular namely Jammu and Kashmir, Kerala, Himachal Pradesh, Andhra Pradesh, Madhya Pradesh, Punjab and UP West. The agreement between the three companies also granted Idea Cellular the right to provide 3G services through Vodafone’s network in Tamil Nadu, Delhi, Kolkata and Chennai.
In the year 2012, a split verdict was given by TDSAT where one bench member supported the agreement while another opposed it. The journey for getting relief through the tribunal has been long for the 3 firms. Telecom firms Airtel, Idea Cellular and Vodafone then placed a plea before the Delhi HC which ruled in the favour of the Department of Telecommunications. After the apex court transferred the case to TDSAT, telecom operators were waiting for a positive decision since September 2013.
TDSAT has ruled in favour of telecom operators. The operators have also made aggressive bids for the 3G spectrum. This judgement has many benefits for customers apart from the obvious. Customers can choose from a wider range of operators. They can opt for a telecom firm that has the highest coverage. Telecom operators can also invest in a wider coverage following this ruling.
India’s leading cellular operators can now use each other’s bandwidth to widen the range of their services. TDSAT (The Telecom Disputes Settlement and Appellate Tribunal) which is a quasi-judicial body that has always been allocated complex cases has really done the firms as well as the users a huge favour through this ruling.
Cellular operators have always been eager to expand 3G services as these can ensure a higher profit margin as compared to traditional voice services. The competition in the arena has been intense for quite a while now. India’s rapidly expanding mobile market will only grow further and this can make for a wonderful return in terms of profit and coverage for the leading telecom operators in the country.