The controversy over the recent raids on the offices of Bharti Airtel, Vodafone and the 3G roaming deals between various Indian telecom operators was not enough it seems.
Top executives of three leading telecom companies in India have now written to the Indian Prime Minister over the issue of the controversial 3G roaming deals (Read RCR Story: Concerns over roaming arrangements in 3G networks, New scam rocks Indian telecom sector).
The letter, jointly written by Bharti Group CEO Sunil Mittal, Aditya Birla Group Chairman Kumar Mangalam Birla, and Vodafone Group Plc CEO Vittorio Colao, seeks Manmohan Singh’s intervention after the government’s move to disallow the 3G roaming deals between telecom companies.
‘We seek your most urgent intervention to ensure that contract and promises are honoured, otherwise the reputation of an acclaimed, transparent auction, will be harmed irreparably,” the letter stated.
The issue pertains to 3G roaming deals between Bharti Airtel, Idea Cellular and Vodafone. Aircel too has sealed such a deal with Tata Teleservices and is offering 3G services in areas where it has no 3G license to operate. The telecom department’s access services wing had asked the DoT to impose penalties on the offending telecom companies.
The firms, in the letter, have also threatened to exit 3G services if the promises made by the government are not honored.
“We also submit most respectfully that, in the event that 3G Intra-Circle Roaming (ICR) is now deemed impermissible, then, it would be a clear breach of our contract and the pre-auction confirmation given by the Government,” the letter stated.
“In that eventually, we request that our spectrum auction payments be refunded to us with interest (as) compensation for all the capital investment made by us,” it further stated.
The letter also points out that the intra-circle roaming deals were a part of the licenses agreements.
“We are completely astonished to hear that the Government is now considering a reversal of its earlier stated position and seeking to question the legally or permissibility of 3G ICR arrangement. This tantamounts to reneging on the Government’s promises …and the confirmations provided before the 3G auction,” the letter stated.
The telecom companies may not be able to get any refunds but more fireworks are expected on the issue in the coming days.
