Vodafone Idea has urged the Department of Telecommunications (DoT) to remove the bank guarantee requirements for spectrum acquired before 2022 and has made detailed representations in this regard, the telco said.
The struggling telecom service provider clarified the move after several media outlets reported that the DoT had issued a notice seeking payment of bank guarantees (BG).
“We would like to submit that the company has made detailed representations to the DoT and continues to be engaged with the DoT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry ask,” the company said in a filing with the BSE.
"As and when a final decision is taken by the DoT, the company will make the necessary disclosures as required by law,” it added.
Vodafone Idea had earlier requested the telecom department for a waiver for submitting bank guarantees. While telcos no longer need to guarantee airwaves purchased in auctions from 2022 onwards, earlier regulations required them to submit a bank guarantee equal to one annual installment.
According to the report, Vodafone Idea’s moratorium on spectrum auction dues is set to end in September 2025. This means the company must submit bank guarantees at least a year in advance to cover these dues. These guarantees were to be submitted in phases for different auctions, with the first tranche expected by September 20.
Vodafone Idea has also initiated "fresh dialogues" with the government after the Supreme Court's decision did not favour it in re-computing the Adjusted Gross Revenue (AGR) case. The Supreme Court recently rejected 19 petitions filed by 19 telecom operators, including Bharti Airtel and Vodafone Idea, to re-calculate adjusted gross revenue (AGR) dues.
Vodafone Idea on September 22 awarded a mega $3.6 billion deal with Nokia, Ericsson, and Samsung to supply network equipment over three years, marking the first step towards the rollout of the company’s three-year capex plan of $6.6 billion, which is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and expanding capacity in line with data growth
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