Under the present permit, the company is entitled to get both GSM and CDMA spectrum. Before applying for dual technology licence in 2008, the company was already operating in 19 out of 22 service areas using CDMA spectrum.
The Department of Telecom may seek fresh legal opinion on the Cabinet decision to allocate a spectrum slot to Tata Teleservices Ltd (TTSL) on the basis of 2001 rate of about Rs 1,658 crore per Mhz.
"We may seek the opinion of the Attorney General in light of TDSAT judgement, whether TTSL is entitled to allotment of initial spectrum of 4.4+4.4 Megahertz in the Delhi service area as per their licence agreement, as approved by Cabinet," an official source said.
The TDSAT on January 31, 2014 had decided against allocating additional spectrum to TTSL as interpreted by the DoT, sources said. Under the present permit, the company is entitled to get both GSM and CDMA spectrum. Before applying for dual technology licence in 2008, the company was already operating in 19 out of 22 service areas using CDMA spectrum.
Also Read: DoT panel for slab-based penalties for violations by telcos
The company was allocated GSM spectrum across country,except in Delhi and 39 districts, after it applied for dual technology licence in March 2008 against payment of full amount.
Due to delay in allocation of GSM spectrum in Delhi and 39 districts, TTSL approached the Telecom Disputes Settlement and Appellate Tribunal. TDSAT in July 2011 passed an order that the company should have been given the airwaves.
Following this order, an Empowered Group of Ministers on November 1, 2012, decided to consider allotment of GSM spectrum to TTSL if any such airwaves were left unsold at the auction later that month. The same allotment was approved by the Cabinet on November 8, 2012.
In the November 2012 auction, there were no takers for spectrum in Delhi service area. These airwaves were again put up for auction in February 2014 when all spectrum in 1800 Mhz (popularly referred to as 2G spectrum) were sold out. In February 2012, 122 2G licences were cancelled following a Supreme Court order.
The DoT in 2012 had taken legal opinion on allocation of GSM spectrum to TTSL after the Supreme Court in its order of February 2012 said that spectrum freed from cancellation of the 122 permits should be allocated to companies through auction.
TataTeleservice stock price
On March 07, 2014, Tata Teleservices (Maharashtra) closed at Rs 7.38, up Rs 0.10, or 1.37 percent. The 52-week high of the share was Rs 9.31 and the 52-week low was Rs 4.38.
The latest book value of the company is Rs -8.88 per share. At current value, the price-to-book value of the company was -0.83.
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