DoT Issues Show-Cause Notice To Vi Over Licence Fee Dues

Vi (Vodafone-Idea) is likely to clear its license fee dues soon. The telecom operator has paid some amount of the dues and the remaining amount will be cleared by this week. This development comes soon after the Department of Telecommunication (DoT) issued a show-cause notice to the operator.

Vi has to pay license fee dues for Jammu & Kashmir, Gujarat, Uttar Pradesh (East), Kerala, Maharashtra, and Orissa. "The company had made payments towards licence fee and spectrum usage charges for the quarter ended March 2021, last month. Payment gaps if any, will be completed within the defined timeline," a source was quoted by BusinessLine. The report said that the telecom operator might clear all amount by April 15, 2021.

DoT Issued Show-Cause Notice

According to the notice, the telecom operator has to clear all dues by March 25, 2021. Notably, the Government has given enough time to the telecom operator as the financial condition of Vi is not that good. The ministry has also asked the operator to pay the whole amount by April 15, 2021. The telecom operator Vi paid Rs. 1,367 crores as spectrum usage charges and license fees.

In addition, the telecom operator paid Rs. 574.65 crores for the spectrum auction. As per the Unified License Agreement, all telecom operators have to pay a licence fee for all quarters during the financial year., which is why all telecom operators should clear the last quarter payment by March 25. The ministry has also issued a show-cause notice to Airtel and Vi for the adjusted gross revenue issue.

Vodafone-Idea Financial Situation In India

It is worth noting that Vi has recently increased the prices of postpaid plans as it wants to increase its revenue. Apart from that, the telecom operator is planning to expand its 4G operations in 16 circles. The company wants to survive against India's leading telecom operators Reliance Jio and Airtel. The telecom operator lost 2.3 million customers this year in January, whereas Reliance Jio and Airtel added 2 million and 6 million users in January. This shows that Vi's situation is difficult as to clear dues of the adjusted gross revenue, spectrum usage charges, and licence fee. It is not making profits and losing customers every quarter.