Vodafone seeks immediate allotment of spectrum won in Nov

The company also sought clarification if the 20-year licence period will commence from date of actual allotment of the said spectrum

Alleging ‘undue’ delay in spectrum allocation, Vodafone India has asked the Department of Telecommunications (DoT) to “immediately allot spectrum” for the 14 telecom zones for which the company has won airwaves in the previous auction that concluded in November 2012. The company has already made payments for the spectrum as per rules.

The country’s second largest telecom services provider by subscriber base has also sought clarification if the 20-year period of the licence validity will commence from date of actual allotment of the spectrum which is already being delayed.

In a recent letter to the DoT secretary R Chandrashekhar, Vodafone India has said, “We call upon DoT to immediately allot us the spectrum acquired by us through auctions, for which payments have already been made and LoIs (Letters of Intent) were issued.”

“The reason for the delay in the allotment of spectrum is on account of the fact that it is still being used by operators whose licences were cancelled vide the Supreme Court judgement dated February 2, 2012,” Vodafone mentioned.

TV Ramachandran, Resident Director (regulatory affairs and government relations), Vodafone India, in his letter, has also pointed out that operators like IDEA Cellular, Videocon, Uninor have already allotted the same frequency in service areas like Assam, Haryana, J&K and Orissa, where Vodafone has also won spectrum in the November auction.

Vodafone has won spectrum in 14 circles in the November auction for Rs 1,127.94 crore. "As per the existing guidelines, Vodafone India has made a payment of Rs 372.22 crore under the deferred payment option route on November, 22, 2012," the letter stated.

As per the notice inviting application (NIA), the issue of LoI (Letters of Intent) shall be taken as the effective date for reckoning of the licence period. So, Vodafone has sought clarification on the 20-year licence term.

"In context of, the pending allocation of spectrum and continued use of spectrum by other license operators, DoT may immediately clarify and confirm that the period of 20 years for which the right to use the spectrum has been acquired by the licensee through this auction will be reckoned from the date of actual allotment of the said spectrum," according to the Vodafone letter.