The Supreme Court of India has declined to stay the order by the Tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT) that had allowed the telecom operators to enter into 3G intra-circle roaming (ICR) arrangements in the circles where they did not have 3G licences. The apex court has, therefore, overturned the ban imposed by the Department of Telecommunications (DoT) on Bharti Airtel, Vodafone India and Idea Cellular which had entered into these agreements in 2011.

Earlier, DoT had imposed penalties of Rs 3.5 billion on Bharti Airtel, Rs 5.5 billion on Vodafone India and Rs 3 billion on Idea Cellular in 2011, terming their spectrum sharing arrangement illegal and in violation of the licensing regulations.

Subsequently, the operators approached TDSAT against the ban. The tribunal cleared the 3G ICR signed between Bharti Airtel, Vodafone India and Idea Cellular and quashed the penalties imposed on them. TDSAT has been of the view that such arrangement of spectrum sharing should be allowed as it leads to better utilisation of the scarce frequency airwaves.

Although the apex court has allowed the 3G ICR pacts, the decision on the penalties and the related transactions would be subject to the court’s final decision on the litigation.