DoT issues show cause notice to Etisalat DB for violating licence norms
By insightVAS - Wed Jun 27, 12:05 pm
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The Department of Telecom has issued a show cause notice to Etisalat DB for closing down its operations in violation of licence conditions.
Etisalat DB licences were cancelled by Supreme Court in February 2 but are valid till September 7, 2012 but the company’s network stopped working even before the Supreme Court order from January 19. As per Supreme Court order, Etisalat DB’s act is against licence conditions as it has not followed the process to close down its operations.
According to DoT, Etisalat DB was required to inform DoT, atleast 60 days before shutting down its operations. The company’s network was switched off by Reliance Infratel with whom Etisalat DB had an infrastructure sharing agreement on January 19, 2012. However, it had informed the DoT about the closing its operations on February 22, 2012.
In the show cause notice to Etisalat DB, DoT has stated that DoT may levy a penalty of Rs 50 crore on the company and seek liquidated damages from the company for violation of terms and conditions of licence agreement.
TRAI has also asked EDB to comply with its licence condition in February and asked to continue its operations till the time its licences were valid.
However, EDB had earlier said that “Nothing is in that license that requires us to give 60-day notice. The only thing that was mandatory was to inform our subscribers 30 days in advance of shutting down operations and we did that.”
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