Vodafone Idea Misses Spectrum Payment Deadline

As per news reports, Vodafone Idea (Vi) has failed to submit a bank guarantee (BG) worth ₹6,090.7 crore or make a cash payment of ₹5,493.2 crore to the Department of Telecommunications (DoT) by the deadline of March 10, 2025. 

This payment was required to cover the shortfall from the 2015 spectrum auction. The government is now considering possible actions against the financially strained telecom operator.

No Extension from the Government

According to news reports, Vi was expected to meet its financial obligation by the end of office hours on March 10, but no payment was made. The DoT has not granted any extension, and a decision on the next course of action is likely in the coming days.

BG Waiver and Pro-Rata Payments

In December 2024, the government provided relief to telecom operators by waiving off BGs worth ₹33,000 crore from past spectrum auctions. This included auctions held in 2012, 2014, 2015, 2016, and 2021. The waiver applied to all three private operators: Reliance Jio, Bharti Airtel, and Vodafone Idea. However, Vi was required to provide a BG or make a cash payment for the 2015 spectrum auction due to a one-time partial shortfall.

Why were Airtel and Jio Not Affected?

While Vodafone Idea needed to fulfill the payment obligation, Bharti Airtel and Reliance Jio were exempt. This is because their payments for spectrum auctions exceeded the pro-rata spectrum usage costs under the DoT’s guidelines. As a result, neither Airtel nor Jio had to submit a bank guarantee.

Conclusion

With no payment made and no extension granted, the DoT may take regulatory action against Vodafone Idea. Investors and industry stakeholders will be closely monitoring how the situation unfolds in the coming days.

On March 12, 2025, Vodafone Idea share price opened at ₹7.32, almost the same as its previous close of ₹7.34. At 9:41 AM, the share price of Vodafone Idea was trading at ₹7.15, down by 2.59% on the NSE.

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