Common use of Roll out Obligation Clause in Contracts

Roll out Obligation. 5.1 The Land Earth Station Gateway Switch for provision of GMPCS Service must be commissioned within 12 months from the date of frequency allotment by WPC. The Licensee shall approach WPC for frequency allotment within 1 month of date of allocation of transponder bandwidth in the concerned Satellite System. 5.2 For the purpose of verification of the commissioning of the applicable system, Licensee shall register with the Network Operations Control Centre (NOCC) of DoT, as per the prescribed procedure and payment of prescribed charges. 5.3 Date of registration by NOCC is to be treated as date of commissioning in case of successful testing as per test schedule prescribed by NOCC/Licensor. If the testing fails, then the Licensee shall re-register with the NOCC after necessary corrections and in that case, Date of re-registration by NOCC shall be treated as date of meeting the roll-out obligation subject to successful testing. 5.4 The time period for roll out of network as per the rollout obligations mentioned above shall be deemed as the essence of the License Agreement and the network must be rolled out not later than such specified time period(s). No extension in prescribed due date will be granted. If the network is rolled out after the expiry of the due date, such delay in rollout of network will entail recovery of Liquidated Damages (LD) under this Condition. Provided further that if the rollout of the network is effected within 15 calendar days of the expiry of the due date then the Licensor shall accept the rollout of network without levy of LD charges. 5.5 At present, minimum 60 calendar days duration is prescribed for grant of SACFA clearance. While examining the compliance of rollout obligations, the delay in grant of the SACFA clearance beyond the above mentioned prescribed duration shall be excluded from the duration set for rollout. For the purpose of calculating the delay in grant of SACFA clearance of Land Earth Station Gateway site, the date of ‘WPC acceptance number’ for SACFA clearance application would be treated as the ‘start date’ and the date on which the SACFA clearance is granted in the online system of WPC would be considered as the ‘end date’. The difference between the ‘start date’ and ‘end date’ after excluding the above mentioned prescribed period would be considered as the delay in grant of SACFA clearance for Land Earth Station Gateway site for the limited purpose of calculating the delay in compliance of rollout obligations. If the SACFA clearance for Land Earth Station Gateway site has been granted within prescribed duration, then for that particular site, delay would be considered as ‘zero’ days. 5.6 In case the Licensee fails to rollout the network, within the period prescribed, the Licensor shall be entitled to recover LD charges @ Rs. 1 Lakh (Rupees One Lakh) per month subject to a maximum amount of Rs. 24 lakh. For delay of more than 24 months, in addition to imposition of maximum amount of LD as mentioned above, the frequency allotment may be withdrawn and the Service authorization may also be terminated. The PBG shall be encashed to the extent of LD amount, if the same is not paid within the time period specified in the notice for recovery of LD. The licensee on such occasions, shall restore the partially encashed guarantee to the full amount. Any failure to do so shall amount to violation of the terms and conditions of the License. 5.7 For the purpose of calculation of delay in compliance of rollout obligations, the month shall mean 1 Calendar month and any extra day shall be counted as full month for the purposes of recovery of liquidated damages.