In a significant turn of events, Vodafone Idea (Vi), a leading telecom operator in India, has successfully secured a relief of Rs 755.52 crore after the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) acknowledged and rectified miscalculations made by the Department of Telecommunications (DoT). The tribunal has directed DoT to adjust the amount within 15 days towards license fees (LF) and spectrum usage charges (SUC) owed by Vi.
The dispute arose when DoT initially demanded Vi to pay Rs 3,926.34 crore as spectrum liability during the merger. Complying with the request to ensure the merger’s smooth progress, Vi paid the stipulated amount. However, upon further examination, the telecom operator discovered errors in DoT’s calculations. Subsequently, Vi approached TDSAT to rectify the miscalculation and sought the adjustment of the amount against its SUC and LF liabilities.
TDSAT’s decision to recognize the mistake made by DoT comes as a much-needed relief for Vi, especially given the financial challenges the telecom operator is currently facing. Vi, grappling with a decline in its overall subscriber base, has been struggling to raise funds. The active subscriber base has dipped below the 200 million mark, and the telco has not reported profits since the completion of its merger in 2018.
While Vi had plans to secure funds by the end of the December 2023 quarter, negotiations with potential investors have hit a roadblock. The telco is now exploring alternative avenues to raise capital, including the potential sale of its fiber assets and in-building solutions (IBS). Vi aims to generate approximately Rs 12,000 crore through these strategic divestments.
This recent development not only provides Vi with financial respite but also underscores the importance of regulatory oversight in ensuring fair practices within the telecom sector.
