NEW DELHI: Telecom service provider Vodafone Idea (Vi) on Tuesday said that it is engaged with the government to remove the bank guarantee requirements for spectrum acquired before 2022. The company, in an exchange filing, mentioned that this is also a demand from the entire telecom industry.
“The company has made detailed representations to the DoT (Department of Telecommunication) and continues to be engaged with DOT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry ask,” said VI in an exchange filing.
The company’s plea comes after the DoT recently issued a notice to Vi to pay the required bank guarantee following its spectrum purchase. While the DoT has been considering the removal of bank guarantee requirements for spectrum purchased before 2022, no final decision has been made yet.
This means that Vodafone Idea, along with other telecom operators, will need to submit bank guarantees by September 2025, when the moratorium on spectrum auction dues expires. The bank guarantee requirements are estimated to be substantial for Vi, with the company needing to submit over Rs 24,700 crore in total. Reliance Jio and Bharti Airtel would also benefit from a waiver of the bank guarantee requirement.