Vodafone Idea Give in to DoT Demands of Bank Guarantees, Oblige By Paying Rs 7,268 Crore

Published by
Chakri K

As it was rumoured just a couple of days ago, Idea Cellular and Vodafone India have cleared the Rs 7,268 crore dues to the Department of Telecommunications (DoT) to pave the way for the merger. Idea Cellular has submitted the bank guarantee of Rs 3,322 crore to DoT, while Vodafone India has cleared the dues of Rs 3,926 crore in cash. “Idea has submitted its compliance to the DoT’s conditional approval letter dated July 9 2018, for the merger of Vodafone India Ltd and Vodafone Mobile Services Ltd with Idea Cellular Ltd, including the payment of Rs 3,926.34 crore (in cash) and bank guarantee of Rs 3,322.44 crore,” an Idea spokesperson confirmed to ET.

dot-payment-idea-vodafone

Having said that, both the telcos are now looking forward to the final approval from the DoT for the merger. Also, ET reported that the dues had been cleared ‘under protest’ which means that the merged entity can head over to the court to challenge the dues it paid to DoT now.

For the unaware, the largest merger in the history of Indian Telecom Sector was stopped by the DoT asking for an amount of Rs 7,268 crore. As mentioned, Idea has given a bank guarantee for one-time spectrum charges, while Vodafone India has paid the dues in the form of cash towards market price for non-auctioned airwaves.

Idea Cellular has earlier confirmed the merged entity will be named Vodafone Idea Limited. The next step for the department is transferring licenses of Vodafone India and its subsidiary Vodafone Mobile Services Limited (VMSL) to Idea Cellular because it will be the listed entity.

So finally, the much-needed approval from DoT is around the corner for Vodafone-Idea merger. The merged entity, as you might be aware of will have over 430 million subscribers, over 37% Revenue Market Share and it will start the operations with Rs 63,000 crore revenue. The next step for Vodafone and Idea Cellular will be to wait for the DoT’s final approval of the merger and combine the operations.

Chakri K

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

Share
Published by
Chakri K

Recent Posts

Tech Highlight for the Day: Xiaomi MIX Fold 2, Ultra Slim Foldable Unveiled

Xiaomi MIX Fold 2 has been unveiled by Xiaomi in Mainland China. As per the…

BSNL Independence Day 2022 Offer: Get 75 Days of Broadband Service at Rs 275

Bharat Sanchar Nigam Limited's (BSNL) Independence Day offer is pretty sweet. The state-run telco will…

Airtel Talks about Why 5G Nsa is More Sensible Choice

If you have been following the talks around 5G, you must have heard there are…

Top Five Titles Going Live on OTT Platforms This Week

The days of exclusively releasing movies in theatres, where crowds flocked to watch productions that…

Moto Razr 2022 With Snapdragon 8+ Gen 1 SoC Launched

The newest foldable smartphone from the firm, the Moto Razr 2022, was unveiled on Thursday…

Motorola X30 Pro Launched: Price, Specifications

The Motorola X30 Pro and the Moto Razr 2022 foldable phone were both introduced in…

5G Spectrum Auction: Bidders Get More Time to Clear Dues

5G spectrum auction for 2022 concluded on August 1. There was serious bidding, and the…

BSNL Should Push to Reach 200 Million User Mark via Homegrown 4G, 5G: Vaishnaw

Bharat Sanchar Nigam Limited (BSNL) right now has the least mobile subscribers in the country.…

iQOO Neo 7, a New Flagship with Dimensity 9000+ Might Launch Soon

In April, information on a future iQOO flagship with a Dimensity chip leaked online. It…