Qualcomm to lose $1billion licence fee?
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Qualcomm could be at risk of losing the $1billion it paid for four broadband wireless access licences to the Indian government.
The US telecom company received a notice from the Department of Telecommunications on September 21, stating that the licence to the companies formed with its Indian partners has been rejected. According to a DoT official, the letter of intent is valid for three months, within which Qualcomm should have taken an internet service provider licence. This, he added, was not applied for in time. Since the letter of intent is no longer valid, DoT applications state that if spectrum allocated is revoked, no refund will be made.
However, a Qualcomm India spokesman responded: "We received a notice informing us that the licence … has been rejected on grounds that we find to be baseless. In fact, the application process was fully complied with, and we will continue to work with the Indian authorities to resolve this matter." Qualcomm said that, according to its interpretation, it could apply for four separate ISP licences and denies the charge of not having applied within three months.
