New Delhi: Despite the fact that rules were bent to favour some telecom companies while allotting 2G licences, it would not be easy for the government to cancel those licences.

Cancellation of 2G licence would lead to huge revenue losses to the public exchequer, adding to the losses incurred during the allotment. If the government cancels the licences, it will have to compensate the companies for the losses they would incur in the process.

Moreover, with the launch of 3G services and the controversy surrounding 2G, it’s very unlikely that any company would come forward to buy 2G licence.

Raising fund for buying the second generation licence would prove an uphill task because the banks have stopped granting loans to companies which got licences in 2007-09.

According to senior officials in DoT, mention of telecom companies in CBI’s chargesheet cannot be a strong reason for cancellation of the licence. However, licences can be cancelled if the services do not start in time.

But the bigger question is what will ultimately happen to these spectrums which do not have takers in the market.

JPN/Bureau