The Supreme Court today directedthat the "entire" licenses quashed by it for 2G spectrum beauctioned without "further delay" and those Telecom firmswhich were unsuccessful and did not participate in the auctionprocess will cease to operate "forthwith".
The apex court also held that those companies whichbenefited by its interim orders to continue with operationsfollowing the quashing of their licenses by its February 2,2012 verdict will have to pay the reserve price fixed by thegovernment for the purpose of conducting auction in November2012.
It said the successful bidders should be allowed tooperate in those circles/areas where the existing serviceproviders have lost the licenses.
A bench of justices G S Singhvi and K S Radhakrishnanclarified that its directions will have no bearing on theallotment of spectrum in 900 MHZ band which was not thesubject matter of the petitions leading to scrapping of 122licenses for 2G spectrum in 22 circles.
The bench also clarified that the liabilities of thosetelecom companies which on scrapping of their licensesdiscontinued their operations since the date of judgement willbe decided separately.
In its 12-page order, the bench said, "We have consideredthe respective submissions. In our view, once the licensesgranted to the private respondents on or after January 10,2008 and subsequent allocations of spectrum were quashed bythis court, the Government is duty bound to auction the entirespectrum, which became available as a result of such quashingand it cannot avoid compliance of the court's order in guiseof acting on the recommendations made by TRAI."
While acting tough on the telecom companies, which tookbenefits of its interim orders, the bench said, "Such of thelicensees, who continued operations after February 2, lastyear, whether or not they gave bid in the auction conducted onNovember 12 and 14, 2012, shall pay the reserve price fixed bythe government for the purpose of conducting auction inNovember 2012.
"The licensees, who did not give bid in the auctionconducted on November 12 and 14, 2012 or who remainedunsuccessful shall forthwith discontinue their operations inthe concerned circles/areas and the successful applicantsshould be allowed to operate in those circles/areas."
The bench also clarified about the telecom companies which opted out to provide service after the cancellation ofthe licenses by saying, "The issue relating to liability ofthe licensees, who discontinued their operations betweenFebruary 2, 2012 and this date (today) shall be decidedseparately."
The apex court said since the issue relating to theallotment of the spectrum in 900 MHZ band was not the subjectmatter before it, the legal issue arising on it could bedecided by "competent judicial or quasi judicial forum".
"Since the issue relating to allotment of spectrum in 900MHZ band was not subject matter of consideration in the writpetition, we deem it proper to make it clear that judgementdated February 2, 2012 will have no bearing on the litigation,if any, filed in the matter of allotment/re-allotment ofspectrum in 900 MHZ band and the competent judicial/quasijudicial forum shall be free to adjudicate upon the pendingmatter or which may be filed hereinafter in relation to theallotment of spectrum in 900 MHZ band and connected issue," itsaid.
The apex court had on February 2, last year cancelled 122licences for 2G spectrum and had directed the Department ofTelecommunication (DoT) to hold fresh auction for them withinfour months. The deadline was extended by its interim ordersfrom time to time.
As per the apex court order, 21 licences of Sistema ShyamTeleservices (MTS), 16 permits of Telenor controlled Uninor,15 of Videocon and 3 CDMA permits of Tata Teleservices were tostand cancelled from January 18, affecting around 25 croresubscribers in the country.
Telenor is in the process of transferring the business ofUninor in 6 circles to new entity Telewings Communications,which recently won spectrum in fresh auction.
In the November 2012 auction, five telecom operators --Bharti Airtel, Vodafone, Telenor-promoted Telewings, Videoconand Idea Cellular -- had applied for participating in theauctions.
Sistema Shyam Teleservices Ltd (SSTL) had notparticipated while Videocon and Telewings won spectrum in sixcircles each.
Idea won spectrum in eight circles.
SSTL has said that the company wants to continue itsoperations and intends to participate in the upcoming auctionin March, 2013.