The Department of Telecommunications (DoT) has stated that Unitech Wireless (now Telenor), Tamil Nadu, is liable to pay it dues of Rs 11 billion on account of obligations arising out of its Unified Access Services Licence (UASL). This comes after DoT approached the Supreme Court challenging Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) order pertaining to the release of performance bank guarantees (PBG) submitted by Unitech Wireless at the time of grant of UASL in 2008. DoT is of the view that TDSAT’s judgement of releasing the PBGs before the clearance of all dues by the licensee has serious fiscal consequences.

As per DoT, Unitech Wireless continued to provide services at the time of moving the TDSAT for return of the PBGs, and was, therefore, liable to pay licence fees. These dues pertain to licence fees, spectrum usage charges, one-time spectrum charge, penalties due to violation in respect of electromagnetic radiation (EMR) and defaults in customer application form (CAF) audit as well as liquidated damages. The liability payable by the company on account of licence fee dues is Rs 1.28 billion for the period between 2007 and 2012, around Rs 172.5 million for spectrum usage charges, and Rs 2.89 billion as penalty for violations that include EMR and CAF audit dues. DoT has stated that the spectrum usage charges due for 2011-12 were Rs 461.5 million, including interest as on January 31, 2015, and the outstanding spectrum usage charges in respect of seven circles assessed for 2012-13 is Rs 17.2 million.

Previously, DoT has issued show-cause notices to the company to pay one-time spectrum charges amounting to Rs 6.52 billion. Presently, it is working on finalising the demand for imposition of liquidated damages of Rs 70 million each for default in second phase rollout obligation in the North East and West Bengal licence service areas. DoT is also assessing licence fees for the 2012-13 fiscal as the firm had not submitted its documents on time.