Vodafone Calls New Auction Guidelines Illegal And Discriminatory

Posted By: Gizbot Bureau

Lately, Vodafone has termed the recently released auction guidelines as being illegal and discriminatory. The leading Indian telco brand says that the auction guidelines were formed favoring one set of players. Vodafone calls the guidelines discriminatory in lieu of the base prices fixed for 800MHz and 900MHz band spectrum.

The base prices for 900MHz band is fixed three times higher than that of 800MHz while TRAI had already issued a notice saying that both the bands would be fixed at the same base price. Vodafone alleges the fixing of 800MHz band at a lower base price is a move to favor a set of telecom players.

Vodafone Calls New Auction Guidelines Illegal And Discriminatory

The company has sought withdrawal of auction guidelines. Vodafone also stated that the 900MHz band is already being used by the company in the Mumbai, Kolkata and Delhi circles and that it is not fair to auction out the band while the company is using it in its networks.

Government of India, on January 22 issued guidelines, for the second round of auction. The auction is expected to earn the exchequer a huge revenue of Rs.45, 000 crore from spectrum sales. The guidelines, however, did not contain any information on the auction dates.

The license dates of a few telecom players, including Vodafone is due for renewal in 2014 and Vodafone has already asked for an extension of its license period. The extension was sought under the clause 4.1 of the license agreement which allows the Government to extend the license period of operators up to ten years at a time, if requests for the same are received well in advance from telecom operators.

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