Vodafone Refused License Extension in Three Indian Cities
Published on: 23rd Mar 2013
By: Simon Davies
Vodafone India has been refused an automatic extension of its licenses in three key markets and will have to bid for the radio spectrum in an open auction at the end of 2014.
Vodafone had been seeking an extension of licenses on terms that are mutually agreed and without having to bid in an auction, which it said was normal practice in other countries, but the Department of Telecom disagreed.
Vodafone also cited clause 4.1 of the license that was granted to it in 1994 which allows for a 10-year extension on mutually agreed terms if the mobile network makes the request during the 19th year of its license.
Vodafone filed the application at the end of last year.
In a statement, the mobile network said that it is "deeply disappointed with the summary rejection of its request for extension of its licenses in Delhi, Mumbai and Kolkata service areas by DoT. This decision is against the interests of our several million customers in these cities/circles."
Rival network, Bharti Airtel is also seeking an extension of its licenses, but has made no comment so far about its situation.
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