Tuesday 3 December 2013

Idea Cellular plans to challenge Rs 600 crore government penalty notice

Idea Cellular, one of the biggest cellular carrier of the country is planning to challenge a government notice asking for Rs 600 crores in penalties for alleged violation of terms and conditions of CMTS /UAS licenses while acquiring erstwhile Spice Communications.

Spice Communications (Spice) was amalgamated with Idea on March 01, 2010, after approval of Company Merger by Gujarat High Court on November 26, 2009 and Delhi High Court on February 05, 2010. Subsequently, in the matter of transfer of Telecom CMTS / UASL licenses held by Spice to Idea, the Delhi High Court had directed DoT to give its final decision on transfer of operational Spice licenses of Punjab & Karnataka in the name of Idea.

As per the latest communication received from the Department of Telecommunications on November 29, 2013, that the Department agreed to take the merger of companies i.e. Spice Communications with Idea Cellular on record and change the name of two Spice UAS licenses of Punjab & Karnataka Service Areas, subject to Idea paying financial penalty of Rs 600 crores besides other list of compliances within next 15 days.

Idea Cellular, an AV Birla group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, it is present in all 22 telecom circles.

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