The telecom department (DoT) has instructed Aircel to send text messages to about 40 million customers telling them to ‘provisionally’ switch to other operators if they want to continue their mobile services in case the Supreme Court passes an order cancelling the airwaves allocated to the carrier in 2006.
A person familiar with the matter said that Aircel, which fears large scale churn of its subscribers if such SMSes were sent, has written back to the DoT, saying it was too premature for DoT to take action or for the telco to be sending such a message, and that they should wait till the next hearing on February 3 or till a final order is passed.
The DoT directive could cast a further shadow on the proposed merger between Aircel and Reliance Communications as well as on the latter’s deal to sell its tower business to Brookfield. A reduction in nearly 45% of Aircel’s subscriber base will impact the valuations of both transactions.
Aircel, in response, has asked the DoT not to issue such advertisements till the next hearing. It further asked the telecom department to remove the letter from its website, saying it was creating “doubts/panic” among its subscribers and vendor partners, and hurting the telco’s business.
The apex court on January 6 had warned that it would cancel Aircel’s spectrum and licence in 14 circles if two executives from parent - Malaysia's Maxis Berhad, which owns 74 per cent in the Indian company - do not appear in a lower court within two weeks in the CBI case against former telecom minister Dayanidhi Maran. The two-week period expired on Friday but Maxis owner T Ananda Krishnan and former Maxis director Augustus Ralph Marshall, have not appeared before the court so far.
The top court also asked the DoT to look for an alternative service provider for Aircel’s nearly 91 million subscribers. DoT could even think of auctioning the spectrum, it suggested.
Aircel has 91 million subscribers in all, out of which over 38 million fall in the 14 circles that were granted 2G airwaves in 2006. The company also offers 3G services in 6 of the 14 circles, which can continue uninterrupted. But the SMSes will go to all the subscribers in the circles, leading to a potential flight of all its subscribers to its competitors.
A person familiar with the matter said that Aircel, which fears large scale churn of its subscribers if such SMSes were sent, has written back to the DoT, saying it was too premature for DoT to take action or for the telco to be sending such a message, and that they should wait till the next hearing on February 3 or till a final order is passed.
The DoT directive could cast a further shadow on the proposed merger between Aircel and Reliance Communications as well as on the latter’s deal to sell its tower business to Brookfield. A reduction in nearly 45% of Aircel’s subscriber base will impact the valuations of both transactions.
Aircel, in response, has asked the DoT not to issue such advertisements till the next hearing. It further asked the telecom department to remove the letter from its website, saying it was creating “doubts/panic” among its subscribers and vendor partners, and hurting the telco’s business.
The apex court on January 6 had warned that it would cancel Aircel’s spectrum and licence in 14 circles if two executives from parent - Malaysia's Maxis Berhad, which owns 74 per cent in the Indian company - do not appear in a lower court within two weeks in the CBI case against former telecom minister Dayanidhi Maran. The two-week period expired on Friday but Maxis owner T Ananda Krishnan and former Maxis director Augustus Ralph Marshall, have not appeared before the court so far.
The top court also asked the DoT to look for an alternative service provider for Aircel’s nearly 91 million subscribers. DoT could even think of auctioning the spectrum, it suggested.
Aircel has 91 million subscribers in all, out of which over 38 million fall in the 14 circles that were granted 2G airwaves in 2006. The company also offers 3G services in 6 of the 14 circles, which can continue uninterrupted. But the SMSes will go to all the subscribers in the circles, leading to a potential flight of all its subscribers to its competitors.
