SC allows quashed telecom licencees to operate till Feb 4

The Supreme Court today allowed all quashed telecom licencees to continue operations until February 4. This is good news for companies like Sistema, Tata Tele, and Idea in some circles, reports CNBC-TV18's Malvika Jain.

But the fact of the matter, one should notice is that even though the Supreme Court has said that until February 4, these companies can continue their operations in circles, which had earlier been found illegal and had been quashed by the Supreme Court until January 18, the Supreme Court on February 4 is going to decide whether the companies which did not participate in the November auctions, should be granted further extension .

The government in an affidavit has sought that until the end of March when it is going to conduct next round of auctions these companies should be allowed to continue their operations, so there is some incentive for them to bid in March.

At this stage the Supreme Court has sought information from the government on two aspects - pricing and the number and names of the companies, which did not participate in the November auctions. On February 4, some clarity will emerge on which companies will be granted further extension by the Supreme Court.