Reliance Jio Asks DoT to Cancel Licenses of Airtel, Vodafone India, and Idea Cellular for Paying Less License Fee

Mukesh Ambani-led Reliance Jio has fired a fresh salvo at India’s leading telecom operators –Bharti Airtel, Vodafone and Idea Cellular — alleging that they paid Rs 400 crore less in licence fee to the government for the January-March quarter, according to various media reports.

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Jio has asked the telecom department (DoT) to levy penalties and even terminate the licences of these incumbents, besides seeking an inquiry against them.

In a letter to the authority, the 4G entrant said that these telecom operators unilaterally, wilfully and intentionally paid the advance license fee for last quarter” of 2016-17 on the basis of estimated adjusted gross revenue (AGR), which was much lower than the license stipulation to pay the license fee not less than the fee paid for the third quarter.

Jio added that any delay in punitive actions against them would set a bad precedent.

Sunil Mittal-led Bharti Airtel paid around Rs 950 crore as the licence fee for January-March 2017, which Jio alleged was Rs 150 crore less than Rs 1,099.5 crore licence fee paid by the leading telecom operator for October-December 2017. On the other hand, Vodafone paid Rs 550 crore which was Rs 200 crore less as compared to Rs 746.8-crore licence fee it paid in the third quarter, Jio said.

Aditya Birla Group-led Idea Cellular paid Rs 60 crore less fee than Rs 609.4 crore paid in the previous quarter, Jio alleged.

A telco is required to pay the licence fee for January-March period based on expected adjusted gross revenue (AGR), but it should not be less than the fee paid for the third quarter of the same fiscal, according to rules set by the telecom department.