Idea faces Rs 50cr fine by DoT for hiding data in a circle

The Department of Telecom may slap Rs 50 crore penalty on Aditya Birla group firm Idea Cellular for violation of licence agreement by allegedly suppressing actual subscriber/customer database in Andhra Pradesh circle.

According to Department of Telecom (DoT) sources, while checking in the network of the licencee company (Idea) in Andhra Pradesh, it was found that there was suppression of actual customer database.

"The licencee has to maintain and update the subscriber database regularly and provide it to the designated authorised security agency periodically and also provide the same to authorised personnel of licensor whenever asked," according to the licence agreement and various instructions issued from time to time by DoT in connection with verification and re-verification of subscribers.

When contacted, Idea Cellular Managing Director Himanshu Kampania said, "We have not received any notice ... we are not aware of it, so, we cannot comment."

According to DoT, the number of pre-paid customers who were not reported in the pre-paid customers database but were active in the month of April 2010 stood at 23,71,662 and 5,81,082 in May 2010.

As per Telecom Enforcement and Resource Monitoring (TERM), vigilance cell of DoT, the company has not only violated the licence conditions and various instructions issued by DoT in respect of verification and re-verification of existing subscribers, but also poses a threat to the security of the nation.

"Thus the company in gross violation of licence condition which becomes threat to the security of the nation," an internal note of the DoT said.

In view of above, the DoT is likely to impose a penalty of Rs 50 crore on Idea cellular.

The company was also rapped by the Delhi High Court yesterday for suppressing information with regard to transfer of six overlapping licences of Spice Communication and also imposed a fine of Rs 1 crore on the company.

According to the High Court, Idea has been asked to surrender two operational licences (Punjab and Karnataka) along with spectrum to DoT to ensure that the subscribers do not get affected. (PTI)