DoT to scan Idea-Spice merger deal: Sources

Sources indicate that the department of telecommunication (DoT) is mulling legal opinion on action with regard to the Idea Cellular and Spice Telecom merger deal violating key clauses on intra-circle merger and mobile licence conditions, reports CNBC TV18's Siddharth Zarabi.

Legal opinions provided by government law officers have given multiple options to DoT stating that violation has taken place in 12 license agreements. Legal opinion has also suggested DoT to issue 12 scanners for 6 circles that include Delhi, Andhra Pradesh, Haryana, Maharashtra, Karnataka and Punjab. DoT is considering to terminate only non-operational licenses, alternatively. It may also levy penalty of Rs 50 crore for functional licenses. As far as intra-circle merger is concerned, DoT has resolved the issue. DoT will withdraw 3G spectrum in three circles and refund fees. Idea Cellular is to get a refund of Rs 322 crore for Punjab 3G bid for its three circles, which are Haryana, Andhra Pradesh and Maharashtra. However, the circles may overlap after the merger. High Courts of Delhi and Gujarat have approved the merger and it has been moved to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) two weeks ago. Also watch the accompanying video.