TTSL asks DoT to drop penalty for rollout delay

4 Nov 2009

India’s Tata Teleservices (TTSL) has called on the Department of Telecommunications (DoT) to waive a proposed penalty related to claims that the cellco failed to roll out its network on time. In September 2009 the DoT revealed plans to fine a number of telcos a total of INR1.36 billion (USD28.7 million) for failing to meet the terms of their concessions by missing deadlines for network coverage. TTSL claims, however, that it is not responsible for the delays, instead arguing that hold-ups were caused by the Telecom Engineering Centre’s (TEC’s) inability to test its network equipment on time. In a letter to the country’s telecoms minister, Andimuthu Raja, TTSL said that ‘no penalty in the form of liquidated damages [should] be imposed on TTSL since the causes for non-availability of the TEC certificates before the specified dates were not attributable to TTSL’. Should TTSL be unsuccessful in its bid to have the penalty dropped it will face a fee of INR410 million.