Vodafone Offers $680 Million to Renew Indian Licenses
Published on: 1st Jul 2013
Note -- this news article is more than a year old.
Vodafone's Indian operations has offered to pay Rs40 billion (USD680 million) to settle a dispute over the renewal of its licenses in Delhi, Mumbai, and Kolkata.
The government refused to automatically renew the licenses when they expired, and wants to sell off the spectrum in an open auction. However, Vodafone argues that the licenses include a clause permitting automatic renewal, at an agreed price.
Citing a letter sent to the Department of Telecoms, the Wall Street Journal said that Vodafone made the unsolicited offer of USD680 million to try and settle the dispute.
Vodafone had 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, and has since filed a lawsuit seeking enforcement of the license conditions.
On the web: Wall Street Journal