|$1 bn & 15 months later, DoT spikes Qualcomm plan|
|Friday, 23 September 2011 00:00|
Fifteen months after CDMA chipmaker Qualcomm won bid for four circles and paid $1 billion to the government in an auction, the department of telecommunications (DoT) has informed it that its application for an internet service provider (ISP) licence is rejected. The licence is imperative for the company to undertake any operations at all with the broadband wireless access (BWA) spectrum it won last year in Delhi, Mumbai, Kerala and Haryana.
Reacting to this, Qualcomm issued a statement saying, “We received a notice from the department of telecommunications on September 21, 2011, informing us that the licence to the companies formed with our Indian partners, for use of the spectrum Qualcomm won at last year’s auction, has been rejected on grounds that we find to be baseless. In fact, the application process was fully complied with, and we will continue to work with the Indian authorities to resolve this matter.”
Qualcomm officials point out that the company won four out of the 22 circles put up for auction on June 21 and received its letter of Intent on July 13; hence, it had time until October 13 to submit its ISP licence application. According to Qualcomm, as soon as it won 20 MHz of unpaired spectrum in each circle, it incorporated its Indian subsidiaries, and each of these four, in turn, applied for the ISP licence on August 9, well within the mandated three months. Also, the application clearly stated that these companies were subsidiaries of Qualcomm.
DoT didn’t request any clarifications over these four companies until November 30, after the application deadline expired. Its questions were about how the companies were related to Qualcomm. On December 20, Qualcomm wrote to DoT with clarifications.
Finally, on September 7 this year, DoT wrote to Qualcomm saying, “Your request for the grant of ISP licences to your nominee companies for provisioning of ISP services through BWA under the ISP licence cannot be considered and is rejected.”
|Last Updated ( Saturday, 11 February 2012 16:58 )|