Vodafone Offers $680 Million to Renew Indian Licenses
Vodafone's Indian operations has offered to pay Rs40 billion (US$680 million)
to settle a dispute over the renewal of its licenses in Delhi, Mumbai, and
Kolkata.
The government refused to automatically renew the licenses when they expired,
and wants to sell off the spectrum in an open auction. However, Vodafone argues
that the licenses include a clause permitting automatic renewal, at an agreed
price.
Citing a letter sent to the Department of Telecoms, the Wall Street
Journal said that Vodafone made the unsolicited offer of US$680 million to
try and settle the dispute.
Vodafone had cited clause 4.1 of the license that was granted to it in 1994
which allows for a 10-year extension on mutually agreed terms if the mobile
network makes the request during the 19th year of its license.
Vodafone filed the application at the end of last year, and has since filed a
lawsuit seeking enforcement of the license conditions.
On the web: Wall
Street Journal
No comments:
Post a Comment