To facilitate the successful completion of the merger, the telecommunications company made the required payment to the government. Vodafone Idea was instructed by the Department of Telecommunications (DoT) to remit Rs 3,926.34 crore as spectrum liability, a payment that Vi promptly fulfilled. However, upon further examination, the telecom operator identified discrepancies in the calculation conducted by DoT. Consequently, Vi sought redress by approaching TDSAT to rectify and adjust the inaccuracies in the amount.
In a significant development for Vodafone Idea (Vi), the Telecom Disputes Tribunal has recognized the telecom operator’s appeal, providing financial relief of Rs 755.52 crore. The relief came after Vi approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to rectify the wrong calculations made by the Department of Telecommunications (DoT) during the merger process.
To facilitate the successful completion of the merger, Vodafone Idea had initially paid the amount demanded by DoT, which was Rs 3,926.34 crore as spectrum liability. Subsequently, VI identified errors in the calculations made by DoT and approached TDSAT seeking adjustment in the amount.
Following Vodafone Idea’s appeal, TDSAT acknowledged the mistake made by DoT in its calculations and directed the DoT to adjust Rs 755.52 crore towards Vi’s license fee (LF) and spectrum usage charge (SUC) within 15 days. Gave. The decision comes as a relief to Vi amid financial challenges, given the telecom operator’s struggle to raise funds and lack of profitability since the completion of the merger in 2018.
Vodafone Idea has seen a sharp decline in its active subscriber base, falling below the 200 million mark. Despite ongoing efforts to raise funds, negotiations with potential investors have faced setbacks, making Vi’s financial position challenging. The telecom operator now aims to raise funds by selling its fiber assets and in-building solutions (IBS), with capital infusion expected to be around Rs 12,000 crore through these routes.