Telecom sector headed for second round of consolidation: Report
Telecom sector headed for second round of consolidation: Report

The telecom department has issued a show-cause notice to Vodafone Idea Ltd (VIL) over non-payment of licence fee for the fourth quarter of FY2020-21, with regard to some circles, sources said.

The show-cause notice dated April 7, 2021 states that the company has not paid Q4 FY21 licence fee (by March 25) for circles of Bihar, Gujarat, Jammu and Kashmir, Kerala, Maharashtra, Uttar Pradesh (East), Orissa, as well as national long distance.

An e-mail sent to Vodafone Idea on the issue remained unanswered. But sources close to the company said that payments had made towards licence fee and spectrum usage charges for the quarter ending March 2021, last month, and that payment gaps if any, will be completed within the defined timeline.

As per the notice, seen by PTI, the Department of Telecom (DoT) has directed VIL to show cause by April 12, 2021 why action should not be taken against the company under relevant clauses of licence agreement.

Licence fee is payable in four quarterly instalments during each financial year. Quarterly instalment of licence fee for the first three quarters of a financial year are payable within 15 days of the completion of the relevant quarter. For the last quarter of financial year, licencees have to pay the licence fee by March 25.

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