Vodafone in negotiations with DoT to remove bank guarantee

8 Oct 2024 , 11:01 AM

Vodafone Idea Ltd. shares rose as much as 3% on Tuesday after the telecom carrier confirmed that it has made comprehensive recommendations to the Department of Telecommunications (DoT).

Vodafone Idea also indicated that it continues to work with the DoT to remove bank guarantee requirements for spectrum bought before 2022.

We would like to submit that the company has made thorough submissions to the DoT and continues to work with the DOT to remove the bank guarantee requirements for spectrum bought before 2022. This is also an industry request, it stated in a filing.

The telecom operator also noted that when the DoT makes a final determination, it will make all relevant disclosures as required by law.

Vodafone Idea’s statement followed rumours that the DoT had issued a warning to the business.

The notification was issued for failing to submit the appropriate bank guarantees related with past spectrum auction dues. This notice came while the DoT discussed with the finance ministry the idea of removing the bank guarantee requirement, but no decision has been made.

The warning was apparently issued because the joint venture between the UK’s Vodafone Group and India’s Aditya Birla Group failed to deliver the appropriate bank guarantees on time for spectrum dues from auctions performed prior to 2022.

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