Tuesday, 5 February 2013
Vodafone asks DoT for “immediate allotment” of spectrum for 14 circles won in November
Telecom major Vodafone has alleged the government for delay in spectrum allocation and has asked the Department of Telecom (DoT) to “immediately allot spectrum” for the 14 circles it won in the 2G auction held last year in November.
Vodafone had won spectrum licenses in 14 circles last year at the 2G spectrum auction conducted by the Indian government after the Supreme court cancelled 122 licenses owing to the 2G spectrum scam. The spectrum, which was allocated back in 2008 under then telecom minister A Raja, were accused of being allotted on a preferential basis and allegedly favorable to some companies.
In the auction, Vodafone emerged as the highest bidder and was allocated spectrum in the 14 circles for a price of Rs.1,127.94 crore, out of which, the company has already paid Rs 372.22 crore under the deferred payment option route.
Vodafone has sent a letter to the Telecom Secretary R Chandrashekhar, in which the company has said,
We call upon DoT to immediately allot us the spectrum acquired by us through auctions, for which payments have already been made and LoIs (Letters of Intent) were issued.
The reason for the delay in the allotment of spectrum is on account of the fact that it is still being used by operators whose licences were cancelled by the Supreme Court in its judgment dated February 2, 2012. For instance, operators like Idea, Videocon, Uninor are on the same frequency band in circles like Assam, Haryana, J&K and Orissa.
In context of the pending allocation of spectrum and continued use of spectrum by other licence operators, DoT may immediately clarify and confirm that the period of 20 years for which the right to use the spectrum has been acquired by the licensee through this auction will be reckoned from the date of actual allotment of the said spectrum.
[Source: Times of India]
The 2G spectrum aution held in November last year was a complete failure, mainly due high reserve prices for some circles. The Indian government, which hoped to raise Rs.400 billion via the sale, managed to raise only Rs.94 billion from the auction.
