SC cancels all 122 2G licenses

In a historic decision, the Supreme Court of India has canceled all 122 2G licenses for mobile networks issued during A Raja's tenure as telecom minister in 2008.

The decision has shocked the telecom industry of the country and might impact the foreign investor confidence in a major way.
This verdict of India's apex court affects telecom players like Unitech Wireless, Tata, Aircel and Idea.

The licenses would be cancelled from four months from now. The Supreme Court has now asked the telecom regulator TRAI to make fresh recommendations for how 2G licenses should be allotted within four months.

The licences cancelled include 21 of Videocon, 22 of Uninor, nine of Idea, 21 of Loop, six of S-Tel, 21 of Sistema, three of Tata, 13 of Swan and two of Allianz.

The court has fined six telecom firms, three of them, Etisalat, Uninor and TATA, have been penalized with Rs five crore each. Loop and Essar have been fined Rs 50 lakhs each.

The court stated the licenses which were issued by Mr Raja had been alloted in an ''unconstitutional and arbitrary manner.'' Tata and Aircel were faulted for failing to meet their roll-out obligations, as they are not offering their services for which they were contractually obliged to, in the different areas or circles assigned to their licenses.

In 2008, A Raja said 'no' to the advice of holding an auction for licenses and spectrum. Instead, he went for a first-come-first-serve policy.