The move comes amid reports of differences between the company and the Department of Telecommunications (DoT) on meeting of rollout obligation in these circles.
India's telecom regulations require a mobile phone company to provide commercial services in at least 10% of the district headquarters of the circles where it has secured a licence within three years. DoT can fine a company that fails to meet the deadline.
A performance bank guarantee, or PBG, is paid by a mobile phone company to the telecom department at the time of spectrum allotment. It is returned by the government on conclusion of the rollout obligation by the operator. Videocon had submitted Rs 10 crore as bank guarantees when it was allotted 2G airwaves in the two circles.
While Videocon Telecom rolled out services in Madhya Pradesh where it has 8.63 lakh customers, it is yet to launch in UP-East where it has no customers. Videocon's PBGs in both circles expired on July 9. The Telecom Disputes Settlement and Appellate Tribunal is due to hear the matter nest on August 26.
DoT had originally asked Videocon to extend its PBGs in UP-East and Madhya Pradesh by January 7 this year, saying if the company fails to do so, it would invoke the PBGs. The company then approached TDSAT to thwart any coercive steps by DoT. The telecom tribunal stopped DoT from taking any action against Videocon, saying that it needed to hear out the differences between Videocon and DoT on adherence to rollout obligations in the two circles.
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