Vodafone Idea gets notice from DoT for not paying license fee

India’s Department of Telecommunications (DoT) has issued a show-cause notice to Vodafone Idea (Vi) for not releasing license fee for the fourth-quarter of the previous financial year (FY21).
Vi mobile network in India
The struggling mobile operator has not paid the license fee, which was due on March 25, for seven telecom circles including Bihar, Gujarat, Jammu & Kashmir, Kerala, Maharashtra, Uttar Pradesh (East) and Orissa, and fee for national long distance licenses.

DoT has asked Vi to show-cause by April 12, why action should not be taken against the company under relevant clauses of the licensing agreement.

According to the Unified License Agreement, the license fee has to be paid in four quarterly installments during the financial year.

Vi paid Rs 1,367 crore as license fee and spectrum usage charges for the same quarter of the previous year, Rs 1,200 crore for the first quarter of this fiscal (April-June). Vi has made an upfront payment of Rs 574.65 crore for spectrum on March 18.

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