iWorld
DoT seeks Rs 26.83 crore from Vodafone Idea over 2022 spectrum rollout
Telecom department alleges operator failed to meet minimum rollout obligations under 2022 auction rules; Vi says no business or financial impact
MUMBAI: Looks like the spectrum has picked up some static. Vodafone Idea has landed in regulatory crosshairs after the Department of Telecommunications (DoT) demanded Rs 26.83 crore in liquidated damages, alleging the telecom operator fell short of the minimum network rollout commitments linked to the spectrum it acquired in the 2022 auction.
The development came to light through a regulatory filing with the BSE on Saturday, in which Vodafone Idea said it received the notice from the DoT on Friday, July 31. The demand relates to an alleged failure to comply with the minimum rollout obligations attached to spectrum allocated under the 2022 auction.
According to the filing, the alleged breach concerns conditions laid down in the Notice Inviting Applications (NIA) 2022, the document that governed India’s 2022 spectrum auction. Under those rules, successful bidders are required to meet prescribed network rollout milestones once the allotted spectrum becomes available for use.
The DoT has sought Rs 26.83 crore as liquidated damages for the alleged non-compliance. Vodafone Idea, however, stopped short of commenting on the merits of the department’s findings, saying only that it is reviewing the notice and assessing its options.
“The company is reviewing the notice and evaluating the next steps in this matter,” Vodafone Idea said in its exchange filing.
Even as it weighs its response, the telecom operator sought to reassure investors that the notice is unlikely to disrupt its business. It said the communication carries no financial or operational impact on the company at this stage.
The latest notice adds another regulatory wrinkle for Vodafone Idea as the cash-strapped operator continues to expand its network and strengthen its market position amid intense competition in India’s telecom sector.
