Vodafone India Demands Allocation of Spectrum to 14 Circles in 2012 Auction

By: Gizbot Bureau

Vodafone has rapped the government with a letter seeking the immediate allocation of spectrum to the 14 circles the company had won in the spectrum auction held in November 2012. Vodafone alleged undue delay in the allocation of spectrum in spite of making the required payments. The company has also asked the government to clarify whether the licensing period of 20 years start from the actual allocation of the airwaves, as the allocation has been still pending.

The company has written to R Chandrashekhar, telecom secretary and asked Department of Telecommunication to immediately allot spectrum to the company's circles as the company had already made the payments and Letters of Intent have also been issued.

Vodafone India Demands Allocation of Spectrum to 14 Circles in 2012

The delay has occurred in the allotment of spectrum because the operators functioning in these circles whose licenses have been cancelled continue to function here as their license validity has extended with the postponement of the Supreme Court hearing.

Operators such as Videocon, Idea and Uninor belong to same frequency band as that of the circles acquired by Vodafone in Assam, Jammu & Kashmir, Haryana and Odisha, in the auction conducted in November 2012. .

Vodafone had acquired the 14 circles in the November 2012 auction for an amount of Rs. 1,127 crore. Vodafone has followed the guidelines and paid Rs. 372.22 crore based on deferred payment option, on November 22 of 2012.

Since the spectrum has not yet been allocated, the company also asked after the commencement for the license period, whether it is from the issue of Letter of Intent or from the time of allocation of airwaves. According to NIA (the notice inviting application), the effective date for determining the license period is from the point of issue of Letter of Intent.

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