Vodafone contests DoT on extra spectrum fee

British telecom firm Vodafone's Indian arm today contested the proposal of one-time charge for extra spectrum held by service providers beyond the contracted limit of 6.2 Mhz, terming it as violation of the contract.

"Any suggestion or action on part of DoT or Trai to charge one-time fee on spectrum (2G) beyond 6.2 Mhz is legally untenable as the consideration has already been paid and is being paid in form of higher spectrum usage charges," TV Ramachandran, Resident Director Regulatory Affairs and Government Relations of Vodafone India, told reporters.

Meanwhile, on the contentious issue of roaming pact among leading service providers to offer 3G mobile services, the company seems to have hardened its stand by willing to return the 3G spectrum to the Government and take back the money if the roaming pact is not allowed.

"Department of Telecom cannot go back on permission for 3G roaming. We are open to returning spectrum if 3G roaming pact among the service providers is not allowed," he said.

"A licensee may enter into mutual commercial agreements for intra service area roaming facilities with other licensed Cellular Mobile Telephone Service Licensees/Unified Access Service Licensees. Further, Trai can also prescribe tariffs or charges for such facilities within the provisions of Trai Act, 1997 as amended from time to time," he said quoting the Licence Amendment of June 12, 2008.

However, the company continued to be bullish about business in India and hoped that there would be regulatory clarity on all issues.

"In terms of business in India we are very bullish on the market and we are also hopeful that regulatory clarity on some of the issues will be there by the department," Vodafone India Strategy Director Samaresh Parida said.