DoT may ask Idea to liberalise spectrum held by Vodafone worth Rs 45 bn

Idea may have to shell out Rs 45 billion in cash

The department of telecommunications (DoT) is going to ask Idea Cellular to liberalise the administratively-allocated spectrum held by Vodafone, worth about Rs 45 billion, before giving its nod to the proposed merger of the two companies. Liberalising of spectrum means allowing to use any technology like third-generation (3G) or 4G services.

According to the merger and acquisition guidelines, an acquirer will have to liberalise the spectrum held by Vodafone in some circles by paying the market price for 4.4 MHz of airwaves allocated administratively or surrender these to the government. For Idea’s own administered spectrum above 4.4 MHz, it has to