Vodafone approaches Delhi High Court against government's decision not to renew its licences

Vodafone India approached the Delhi High Court challenging the government decision not to renew its licences in key circles of Mumbai, Delhi and Kolkata beyond November 2014.

"The DoT arbitrarily rejected Vodafone's applications for extension. Accordingly, Vodafone is constrained to take the legal recourse by challenging DoT's arbitrary rejection of its extension applications as this matter can potentially cause grave inconvenience to millions of customers in these 3 circles," the company said in a statement.

It added: "Vodafone India Ltd (VIL) is taking all required actions, including legal, to ensure extension and continuity of its licenses in Mumbai, Delhi and Kolkata, as per the provisions of policy and license and repeated assurances by DoT and Ministry in the past."

The telecom operator had earlier sought the extension under Clause 4.1 of the licence agreement. The government can extend the period of licence by 10 years at one time if the request is made by the operator during the 19th year of the licence period.

However, the Department of Telecom (DoT) rejected the demand of Vodafone and asked the mobile operator to bid for airwaves to continue services in these areas.

Vodafone has around 24 MHz spectrum in 900 MHz band in these three circles.

Stating that it has been operating in conformity with all applicable laws, Vodafone said, "...it has right to extension as both, applicable policy (NTP 99) and licence, provide for extension and continuity of licences."

The 900MHz and 1800MHz spectrum allocated to Vodafone, is embedded in the licence and extension of licence necessarily means the extension of embedded spectrum, it added.

Vodafone said DoT on February 15, 2012 had communicated that the validity of existing mobile licences may be extended for another 10 years at one time, as per the provisions of the extant licensing regime with suitable terms and conditions.

"Thus, the decision to extend licences has already been taken by DoT and it is only the terms and conditions of extension that are to be decided," it added.

Vodafone had filed extension applications for the three metro circles with DoT in December 2012. As no decision was forthcoming from DoT for several months, Vodafone filed a petition with the Delhi High Court for consideration of the licence extension applications.