GSM operators may move SC as TDSAT denies jurisdiction

Telecom companies Bharti Airtel, Vodafone Essar and Idea Cellular have withdrawn their petition from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) over the Telecom Regulatory Authority of India proposals to slap new fees on second-generation (2G) spectrum, after the tribunal said that it had no jurisdiction over TRAI recommendations.

Sources told CNBC-TV18 that the GSM operators may approach the Supreme Court with pleas and the case will take another turn. TDSAT has granted the GSM operators the liberty to move to another forum.

On Monday, Bharti, Vodafone and Idea had appealed to TDSAT telecoms tribunal over the sector regulator's proposals on 2G allocation and pricing.

On 11 May, TRAI had among other things recommended that operators pay a one-time fee for holding 2G radio-spectrum beyond 6.2 MHz based on 3G prices, a move that will hit established companies that are dominant on the GSM platform.

Telecom companies have been up in arms against the TRAI's recommendations on capping of spectrum in circles, cost for buying additional spectrum, and mergers and acquisitions.

The three companies challenging the TRAI recommendations have asked the government to dump the report, which according to them are "retrograde" and "absurd". The GSM operators are also critical of capping the spectrum at 8 MHz in all circles except Delhi and Mumbai where the limit is 10 MHz, as they think it would restrict future growth prospects.

However, Reliance Communications and Etisalat DB, which operate on the CDMA platform, welcomed the TRAI recommendations.