India’s Economic Times reports that the country’s Department of Telecommunications has issued notices to Idea Cellular and Etisalat DB regarding the cancellation of their licences in certain regions, after their failure to meet 2G network rollout obligations. According to Reuters, the companies now have 60 days to respond, detailing why the licences should not be revoked. Idea has fallen foul of the regulator in its Punjab circle, while Etisalat DB is under investigation for its Delhi and Mumbai operations. It was reported that earlier this month, the DoT had collected INR3 billion (US$66.25 million) in fines from operators who were found to have missed their rollout obligations.

The moves come after another week of scandal with regard to India’s 2G licence issue process, following claims that licences were bought below market value, with many of the recipients subsequently receiving investments from international operators. Loop Telecom told the regulatory authorities they could auction its nationwide licences, on the condition it should be able to match the highest valuation to enable it to continue its business in the country. And Shahid Balwa, one of India’s most high-profile entrepreneurs, stood down from his position at real estate company DB Realty, following an investigation into the activities of Swan Telecom, which he founded. Swan acquired licences in 13 regions for INR15.4 billion, before selling a 45 percent stake in the business to Etisalat for INR42 billion – creating Etisalat DB.