Vodafone India has sought extensions for its three telecom licences that expire in November 2014, stating it as expedient and in public interest.
The GSM operator is seeking an additional 10-year validity for the three telecom circles – Delhi, Mumbai and Kolkata – that were granted in 1994, with 20-year tenures.
Licence pact
The company has sought the extensions under clause 4.1 of the licence agreement, which states that the validity could be extended by another 10 years on mutually agreed terms. The request for the one-time extension has to be made in the 19{+t}{+h} year of the licence period.
“The 19{+t}{+h} year of licence has commenced on November 29, 2012,” Vodafone said in its letter to the Telecom Secretary R Chandrashekhar, seeking an extension for its Mumbai circle.
Similar letters were sent for the extension of services in Delhi and Kolkata. The Mumbai-based firm, which has a total of about 150.77 million users as of November end, has about 24 MHz spectrum in 900 MHz band in these three circles.
The Government is expecting to raise about Rs 20,000 crore from the second round of the 1,800 MHz and 900 MHz band spectrum auction expected in this financial year. The exact date for the auction – wherein it will sell 900 MHz in Delhi, Mumbai and Kolkata – is yet to be declared.
Vodafone India had invested more than Rs 1,900 crore in the Kolkata circle, and Rs 147 crore in financial year 2011-12. The company had 43 lakh users in the Kolkata circle as of October. Its total investments in the Delhi circle are more than Rs 6,000 crore (Rs 406 crore in 2011-12) where it has more than 87 lakh users.
It had invested more than Rs 6,000 crore in the Mumbai circle (Rs 433 crore in 2011-12), where it has 61 lakh subscribers.
Letter to Chidambaram
Vodafone India had also sent the letter to Finance Minister P. Chidambaram, who also heads the Empowered Group of Ministers on telecom, Telecom Minister Kapil Sibal and Minister for State for Communications and IT Milind Deora.
The letter also says that the licensorr’s (Department of Telecommunications) ruling would be final in this regard.
rajesh.kurup@thehindu.co.in