Vodafone Idea stated that it has told the Department of Telecommunications (DoT) to remove the bank guarantee requirements for spectrum that was acquired before 2022. It has also made a comprehensive representation in this regard. After several media outlets reported that the DoT had issued a notice seeking payment of bank guarantees (BG), the telecom service provider has also clarified the above move.
“We would like to submit that the company has made detailed representations to the DoT and continues to be engaged with the DoT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry task,” the company stated during a filing with the Bombay Stock Exchange.
It added, "As and when a final decision is taken by the DoT, the company will make the necessary disclosures as required by law.”
Earlier, Vodafone Idea had also requested the telecom department for a waiver pertaining to submitting bank guarantees. While telcos now no longer need to guarantee airwaves purchased in auctions from 2022 onwards, the previous regulations required them to submit a bank guarantee which is equal to one annual installment.
As per a credible report, Vodafone Idea’s moratorium on spectrum auction dues is expected to end in September 2025. With this, it means that the company will need to submit bank guarantees at least a year in advance so as to cover these dues. Also, these guarantees were to be submitted in phases as per different auctions, wherein, the first tranche was expected by September 20.
