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TDSAT orders DoT to cough up

30 Jul 2012

India’s Telecom Dispute Settlement and Appellate Tribunal (TDSAT) has instructed the Department of Telecommunications (DoT) to return bank guarantees submitted by defunct cellco Etisalat DB at the time of its spectrum allocation. According to the Business Standard, Etisalat argued that its guarantees should be refunded, as it had complied with the terms of its licence by meeting rollout targets before the cancellation of its concessions in February this year. Etisalat’s guarantees totalled INR1.6 billion (USD28.94 million), though an interim order from the TDSAT in May reduced that amount by half. For its part, the DoT confusingly argued that it did not need to comply with its contractual obligations, despite confirming that Etisalat’s licence was valid until 7 September 2012.

India, Department of Telecommunications (DoT), Etisalat DB (formerly Swan Telecom)

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