Delhi: Idea Cellular against extension of licenses for Airtel and Vodafone

By November 6th, 2014 AT 4:05 AM

Idea CellularIdea Cellular has opposed the extension of licenses for Bharti Airtel and Vodafone in the Delhi circle. Earlier, Bharti Airtel and Vodafone had asked DoT an extension in license for 6 more months after November citing the delay in spectrum allocation which has led to a delay in re-configuring the network in the new spectrum.

“Any delay in spectrum allocation beyond 30.11.2014, would result in delay in the launch of Idea services on the said 900 MHz spectrum by an equivalent period, and is totally unacceptable,” Chief Financial Officer of Idea, Akshaya Moondra wrote in a letter to DoT.

Idea added that it should be soon allocated the bandwidths in the 900 MHz where they paid Rs. 926 crore and provided a bank guarantee of Rs. 547.16 crore.

“Any delay would make us incur loss on account of interest cost for each day of delay without corresponding revenue,” Idea said, adding that the interest cost on its investment was Rs 1.02 crore a day.

The reason for the extension of Airtel and Vodafone permits is that the blocks of bandwidth they have been awarded within the 900 MHz band are different from what they currently hold in the band, requiring the operators to re-configure their networks. Idea added that these operators retain the airwaves they currently hold and that the remainder in that band be awarded to their company.

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