Vodafone Idea Gets ₹26.83 Cr DoT Notice for Alleged Spectrum Rollout Lapse

The Department of Telecommunications (DoT) has issued a notice to Vodafone Idea seeking payment of ₹26.83 crore as liquidated damages over an alleged default in meeting minimum rollout obligations linked to spectrum allocated in the 2022 auction.

In an exchange filing on Saturday, Vodafone Idea said it received the notice on July 31 and is currently reviewing it. The company said it is evaluating the next steps in the matter.

Vodafone Idea also said the demand is not expected to have any material impact on its financial position and that its day-to-day operations remain unaffected.

Notice Linked to 2022 Spectrum Rollout

According to the company, the demand relates to the alleged non-compliance with minimum rollout obligations for spectrum acquired in the 2022 spectrum auction.

The rollout obligations were specified in the Notice Inviting Applications (NIA) 2022, the bid document governing the auction. Telecom operators are required to meet these obligations after the spectrum is assigned to them.

Vodafone Idea said it is examining the notice before deciding on its course of action. The company did not provide further details on the alleged default.

2022 Auction Marked India's 5G Rollout

The 2022 spectrum auction was India's first sale of 5G airwaves and the country's largest spectrum auction at the time. Vodafone Idea acquired spectrum in selected telecom circles, while Reliance Jio and Bharti Airtel bought larger quantities.

The telecom operator also participated in the June 2024 spectrum auction, acquiring 30 MHz of spectrum for ₹3,510.40 crore. The auction primarily helped telecom companies renew spectrum holdings that were nearing expiry.

The 2024 auction raised ₹11,340 crore through the sale of 141.4 MHz of spectrum. Both Bharti Airtel and Vodafone Idea used the auction to renew holdings in the 900 MHz and 1800 MHz bands, while the latest notice relates specifically to rollout obligations linked to the 2022 spectrum auction.