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DoT rejects Vodafone’s 2G extension plans in India

2 April 2013 1,184 views No Comment

DoT India has rejected Vodafone’s request to renew its 2G licenses in Delhi, Mumbai and Kolkata. These licenses are going to expire in November 2104 as they are valid for 20 years only that are on completion. These licenses cover 900MHz and 1800MHz frequencies.

“Vodafone is deeply disappointed with the summary rejection of its request for extension of licenses in Delhi, Mumbai and Kolkata service areas,” says Vodafone.

vodafone

According to DoT, Vodafone can continue 2G services in this region when it is successful in bidding frequencies in an auction, which it is already informed to do. The auction has begun. But Vodafone has not bid as yet according to Reuters. Vodafone believes that it is permitted to extend the license.

In February this year, Vodafone had challenged DoT in its decision to auction the spectrum. A petition was filed against DoT.

The regulatory makes wrong decisions often. In 2012, the Supreme Court of India cancelled 122 2G licenses. These licenses were issued in 2008 and they were cancelled on the reason that some local companies were given against the law favors during the selection. Then the licenses were auctioned off.

This was a blow to the foreign investors who had invested much in 2G licenses with the local companies. Here Vodafone won the game as it had not acquired any of the 122 2G licenses.

In November 2012, when the government auctioned 1800MHz spectrum, Vodafone India acquired 2G spectrum in 14 telecom circles. But a pull that Vodafone still is in is the $2.2 billion dispute with Indian tax authorities. The basis of this clash lies in Vodafone’s 2007 acquisition of Hutchison Whampoa’s Indian operations.

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