New Delhi, Aug 2: Vodafone Idea (Vi) has been served a notice by the Department of Telecommunications (DoT), seeking payment of Rs 26.83 crore as liquidated damages for an alleged failure to meet the minimum rollout obligations attached to spectrum acquired in the 2022 auction.
The notice relates to the rollout conditions specified under the Notice Inviting Applications (NIA) 2022, which telecom operators are required to fulfil after the assignment of spectrum.
The company has said it is examining the notice and evaluating its next course of action.
The DoT has alleged that Vodafone Idea failed to comply with the minimum network rollout obligations associated with spectrum allocated through the 2022 spectrum auction. As a result, the department has sought payment of Rs 26.83 crore in liquidated damages.
In its regulatory filing, Vodafone Idea said the notice does not have any immediate impact on its financial, operational or other business activities.
The company added that it is assessing the legal and regulatory implications of the demand.
Under the terms of the 2022 spectrum auction, telecom operators were required to meet prescribed network rollout milestones within stipulated timelines after receiving spectrum. Failure to comply with these obligations can attract liquidated damages under the licence conditions.
The development comes as Vodafone Idea continues to expand its 4G and 5G network infrastructure while working to strengthen its market position amid intense competition from larger rivals. (BVI)
