Vodafone challenges DoT's move to deny extension of licences

DoT's move will inturrept services in three lucrative circles - Delhi, Mumbai & Kolkata, the compan said

Vodafone India has said that the decision of the Department of Telecommunications (DoT) not to give extension of licences beyond 2014 will interrupt services in the three lucrative service areas — Delhi, Mumbai and Kolkata.

“The rejection of application shows that DoT has acted against public interest, as it will lead to disenfranchising 50-60% of the market leading to disruption of services,” said T. V. Ramachandran, resident director at Vodafone India, in a recent letter to DoT.

DoT had, last month, abandoned Vodafone India’s application seeking renewal of licences in Delhi, Mumbai and Kolkata circles that are due for renewal in 2014. Vodafone India had bought licences in 1994 with 20-year tenures.

According to the DoT, the company should participate in spectrum auction and pay a price for spectrum if it wanted to continue operations.

In its letter, Vodafone India has questioned DoT’s version stating that the company had never asked extension for free and instead repeatedly requested DoT to propose new terms and condition for extension.

The recently introduced policy should not be applicable to Vodafone India as the new policy does not have retroactive effect, the company said in its letter to DoT. “Any subsequent change in policy cannot apply to licences granted earlier and rights which have been protected under such licenses,” Ramachandran said in his letter. “It is reiterated that we continue to be governed by the provisions" of the 1999 telecom policy.”

“We demand justice and hope that justice would be done to us,” Ramachandran said in the letter. The company has also asked DoT to withdraw its earlier decision canceling Vodafone India’s request seeking extension of the operating licences.