DoT demanded ₹26.83 crore from Vodafone Idea for missing 5G rollout targets. The telco said operations remain unaffected.
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The Department of Telecommunications issued a notice to Vodafone Idea demanding ₹26.83 crore in liquidated damages, the telecom operator said in an exchange filing Saturday.
The demand relates to an alleged failure to meet minimum rollout obligations for spectrum won in the 2022 auction. The alleged violation pertains to network rollout obligations laid down in the 2022 bid document. The 2022 auction was India's first sale of 5G airwaves. A total of 51.2 GHz of spectrum was sold across multiple bands, the Financial Express reported.
Vodafone Idea said it is reviewing the notice and evaluating next steps. The notice was received Friday. The notice would not have a material effect on its financial position, the company said. Day-to-day operations remain unaffected.
In the 2022 auction, Vodafone Idea bought spectrum in a limited set of circles, trailing the volumes picked up by Reliance Jio and Bharti Airtel.
In the June 2024 auction, Vodafone Idea bought 30 MHz of spectrum for ₹3,510 crore. Bharti Airtel spent ₹6,857 crore on 97 MHz. Reliance Jio spent ₹974 crore on 14.4 MHz. The 2024 auction raised ₹11,340 crore from the sale of 141.4 MHz of spectrum. Both Airtel and Vodafone Idea used it to renew expiring holdings in the 900 MHz and 1800 MHz bands.
Shares of Vodafone Idea closed at ₹13 on Friday. The stock was up 1.09% before the public disclosure. The stock has declined more than 10% over the past month. Over the last six months, it has gained about 20%.
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