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Policy & Regulation
3G Roaming: DoT may ask Vodafone to pay Rs 549-crore penalty
TT Correspondent |  |  16 Jul 2013

The department of telecommunications (DoT) is likely to ask Vodafone India to pay an additional penalty of Rs 549 crore for using third-generation (3G) spectrum outside its license zones.

R B Sinha, director general of audit (post and telecommunications) in a recent audit has argued that Vodafone had used spectrum resources allocated to other players in 11 circles and must be made liable to pay, as penalty, a proportionate amount of the bid amount paid by the successful bidder, for the period of their use of 3G spectrum.

As per norms, operators are required to pay a percentage of the adjusted gross revenue (AGR) as spectrum usage charges.

DoT had sent notices to Vodafone, Bharti Airtel and Idea Cellular, terming the 3G intra-circle roaming pacts are a violation of licence norms.

Vodafone has termed DoT’s decision as “arbitrary, inconsistent, unfair and unreasonable”.

“It will give rise to serious disputes and challenges but will also irreparably impact all future auctions that may be conducted by the DoT as bidders would have no faith or rely on any statements made by the DoT”, it said.

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16 Jul 2013(IST)  
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