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Rediff News  All News  » Business » Spice to decide on COAI petition soon

Spice to decide on COAI petition soon

November 02, 2007 17:30 IST
B K Modi-promoted Spice Communications will decide before November 12 whether it will pull out of the COAI's petition in the TDSAT, where the association has challenged the government's decision allowing dual technology use and enhanced subscriber-based spectrum allocation.

"We have not yet taken any decision (to pull out of the COAI petition)... studying the situation. We feel there are different views in COAI. Everybody is playing differently. Sunil Mittal has written a letter on his own to the government. We want to resolve the matter. We are here to serve the customer, not to indulge in litigation", B K Modi told PTI.

However, the association is unfazed by these developments and said majority of the members of COAI are committed to taking the battle to its logical end.

"There is a clear majority of members fully committed to continue with the crusade to seek justice and fair-play for GSM operators," TV Ramachandran, Director Genaral of COAI, told PTI.

Asked whether the company would continue to be a part of COAI even if it refuses from the petition, Modi said, "Nothing can be said at the moment". Spice operates in Punjab and Karnataka and has applied for Unified Access licenses for pan-Indian presence. It also has NLD and ILD licenses.

If Spice Communications withdraws, it will be a double jolt to the COAI after Aircel, in which Maxis holds majority stake, today announced its decision to pull out from the petition. The Modi Group owns 51 per cent stake in Spice Communications, while the remaining stake is with Telekom Malaysia.

In a proceeding in TDSAT on Friday, Aircel informed its decision to withdraw itself from the suit. Reliance Telecom, the GSM arm of Anil Ambani's ADAG group, is not part of the COAI nor is it a party to the petition.

Rohit Chand, executive director Aircel, had said, "These are shareholders' issues whether to be part of the petition or not". Aircel operates in nine circles and is awaiting spectrum allocation in 13 circles.

GSM operators have been hit hard by the DoT decisions to allow cross-over technology to a single player and substantial hike in the user-base for additional spectrum allocation.

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