Sistema Shyam Teleservices May Get Notice over Services Rollout

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The department of telecom (DoT) plans to issue a show cause notice to Sistema Shyam Teleservices for failing to meet its third-year rollout obligations in Jammu & Kashmir, and accordingly proposes to slap a Rs 7-crore fine for liquidated damages (LD) on the Indian unit of Russia’s Sistema JSFC.

As per the licence regulations, a mobile operator has to ensure coverage in 50 per cent of the total district headquarters in a service area within three years from spectrum allocation to comply with the DoT’s criteria for second phase rollout.

If any operator fails to do so, the DoT can slap LD charges at Rs 5 lakh a week for the first 13 weeks, at Rs 10 lakh for the next 13 weeks, and finally at Rs 20 lakh for the next 26 weeks, subject to a cap of Rs 7 crore. For rollout defaults beyond 52 weeks, the DoT can terminate an errant mobile operator’s permit.

In Sistema Shyam’s case, the DoT’s vigilance wing in J&K noted that “in case of the (operator’s) 50 per cent rollout obligation, testing was not completed and no service testing certificates were issued”. Accordingly, the DoT’s access services wing has recommended a show cause notice be issued to the operator for “imposition of Rs 7 crore LD charges for default in the second phase rollout obligation in J&K”. Original post at Communications Today

Wahengbam Rorrkychand

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