Vodafone on Monday approached telecom tribunal TDSAT, challenging a clause in the draft guidelines for the 2G spectrum auction under which incumbent operators using 1,800-MHz spectrum must pay an auction-determined price to migrate to a liberalised spectrum regime for 20 years.
The Department of Telecommunications (DoT) had said that under the new liberalised spectrum regime an operator could use the same spectrum to offer any service — 2G, 3G or 4G. If the guidelines are implemented, the three incumbent operators would have to fork out Rs 1.25 lakh crore for migration to the new regime.
However, Vodafone has contended its existing licences are already technology neutral and enable it to offer any services, so there is no justification to pay a high spectrum price and migrate.
The move brings a fresh twist in the contentious 2G auction process, just two days before the Empowered Group of Ministers (EGoM) is scheduled to meet again to decide on the auction base price.
Vodafone’s plea would be heard on Thursday. Vodafone India Resident Director T V Ramachandran said, “We had no option but to file in the TDSAT today. We have asked the government to scrap Clause 6 of the draft auction guidelines of July 3rd.”
Top executives of the Cellular Operators Association of India said Airtel and Idea Cellular were also contemplating filing separate applications on the issue. An Idea Cellular spokesperson said the company had various options but would not like to comment. Airtel declined to comment.
Vodafone has said the clause is “factually incorrect as there is no difference between the liberalisation agenda that the DoT has now announced and what is already permitted under the policy and licence.”
Ramachandran said the liberalised use of spectrum and technology neutrality were already enshrined in the current licences, under which the operators could offer any service.
The draft guidelines said service providers may be allowed to convert their existing 1,800-MHz spectrum to liberalised spectrum for 20 years on payment of an auction-determined price. The entry fee paid by the operators (Rs 1,650 crore for a pan-India licence) would be adjusted on pro rata basis, they said.
