Idea announced its merger with Spice in June 2008. The DoT was provided a copy of the press release with a detailed plan of the proposed merger, and over the last three years was updated at every step through more than a score of letters and meetings. Idea, way back in July 2008, also unconditionally offered to surrender overlapping licenses if policy so required.
In a meeting in August 2008, the DoT advised Idea that it should obtain necessary Court approvals, and then approach the DoT for merger of licenses, which the DoT represented was admissible as per policy, and which incidentally had exactly the same effect as surrender, since neither the overlapping licenses nor spectrum were ever used. Both Idea and the DoT acted as such, but when Idea approached the DoT for license amendment after the Courts approved merger, the DoT exhibited incoherence at first, and lately high handedness by way of selectively and unconnectedly withholding 3G spectrum, issuing show cause and demand notices, and now obtaining an ex parte order on a merger approved over a year ago.
Amazingly, what Idea had applied for in January 2010, as per the DoT’s own earlier advice, would have had effect of the Govt keeping Rs 843 cr Entry Fee and Idea getting nothing in return. The inexplicable delay by the DoT in clearing the license amendment has of course harmed Idea and consumer interest, but crucially has caused, and continues to cause, loss of crores of revenue to the exchequer every passing week. Apparently to cover for its inefficiencies, the DoT is now indulging in duplicity and muscle flexing. Idea will resist and not be bullied.
About IDEA Cellular Ltd
IDEA Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. The group operates in 26 countries, and is anchored by more than 130,600 employees belonging to 40 nationalities. More information on the Company is available at: www.ideacellular.com and on the Group at: www.adityabirla.com.
In a meeting in August 2008, the DoT advised Idea that it should obtain necessary Court approvals, and then approach the DoT for merger of licenses, which the DoT represented was admissible as per policy, and which incidentally had exactly the same effect as surrender, since neither the overlapping licenses nor spectrum were ever used. Both Idea and the DoT acted as such, but when Idea approached the DoT for license amendment after the Courts approved merger, the DoT exhibited incoherence at first, and lately high handedness by way of selectively and unconnectedly withholding 3G spectrum, issuing show cause and demand notices, and now obtaining an ex parte order on a merger approved over a year ago.
Amazingly, what Idea had applied for in January 2010, as per the DoT’s own earlier advice, would have had effect of the Govt keeping Rs 843 cr Entry Fee and Idea getting nothing in return. The inexplicable delay by the DoT in clearing the license amendment has of course harmed Idea and consumer interest, but crucially has caused, and continues to cause, loss of crores of revenue to the exchequer every passing week. Apparently to cover for its inefficiencies, the DoT is now indulging in duplicity and muscle flexing. Idea will resist and not be bullied.
About IDEA Cellular Ltd
IDEA Cellular is India’s 3rd largest national mobile operator, with over 86 million subscribers. With traffic in excess of a billion minutes a day, Idea ranks among the Top 10 country operators in the world. Using the latest in technology, Idea provides world-class service delivery through the most extensive network of customer touch points. Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.
IDEA Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. The group operates in 26 countries, and is anchored by more than 130,600 employees belonging to 40 nationalities. More information on the Company is available at: www.ideacellular.com and on the Group at: www.adityabirla.com.
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