UPDATE: DoT blinks first, grants Qualcomm ISP license

UPDATE: An earlier report in this respect had pointed out at U.S.-based chipmaker, Qualcomm’s failed attempt at seeking licenses from DoT. Now, however, a report in DNA confirms that the Department of Telecommunications (DoT) has granted Qualcomm ISP licenses, marking the beginning of the latter’s Indian innings. Qualcomm’s earlier attempt at gaining these licences met with stiff resistance from the DoT, on the grounds that Qualcomm had missed its deadline for applying for the licences and that they had asked for more than what they can claim. Qualcomm, however had refused all these allegations and looked forward to resolve all matters with the DoT.

Now, Qualcomm can proceed with its plans to rolling out its services in four regions, namely - Mumbai, Delhi, Haryana and Kerala.

Qualcomm Inc., the U.S.-based chipmaker’s application to the Department of Telecommunications (DoT) to seek licenses for four of its local joint ventures to offer Internet services in the country, has been rejected. Citing as a reason for the rejection, the DoT, which is the part of the Ministry of Communication and Information Technology, stated that Qualcomm had missed its deadline. According to a report in the Wall Street Journal, DoT added that in addition to missing its deadline, Qualcomm was entitled to get its license approved to only one of the four local joint ventures, mentioned above, since that was what the local rules in the country state. Qualcomm, however, refutes the claims of DoT stating that their application obeyed all rules. 

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Delayed?

Qualcomm’s stakes are high. If it ends up losing out on the licenses, it would lose as much as $1 billion, which it spent towards winning these licenses, and subsequently offering these wireless broadband services to Delhi, Haryana, Kerala and Mumbai. The report further states that as per auction norms - ‘if at any stage, the spectrum allocation is revoked, withdrawn, varied or surrendered, no refund will be made.’ Losing out foreign investors is not exactly what India’s telecommunication space needs at this moment. The matter with DoT is currently under talks with the law ministry for legal assistance. 

Qualcomm reportedly looks forward to resolving the issue with DoT.