Vodafone Essar contests proposal to levy additional spectrum charge

Vodafone Essar, the Indian subsidiary of UK-based Vodafone group, has contested the government's proposal to levy a one-time charge for additional spectrum, stating this was a violation of contract and "legally untenable".

"Any suggestion or action on part of the telecoms department or TRAI to charge one-time fee on spectrum beyond 6.2 MHz is legally untenable as the consideration has already been paid...," T V Ramachandran, resident director, regulatory affairs and government relations of Vodafone Essar said.

Earlier this month, the Telecom Regulatory Authority of India (TRAI) reiterated its earlier stance of imposing a one-time fee of Rs4,572 crore on operators for every unit of airwaves they hold beyond the contracted limit of 6.2 MHz. The fee is about six times that of its current price.

Vodafone would explore all options including seeking legal recourse if the one-time fee was imposed, Ramachandran said.

The GSM operator will incur additional expenses of over Rs1,800 crore if TRAI's proposal is accepted by the Telecoms Commission, according to industry reports.

Telecoms Commission, the decision-making body of the communication ministry, is set to meet on 28 November to decide on the issue.