According to a media report, Idea Cellular may have to pay more for its acquisition of Spice Communications. Following the calling of a government committee to indicate spectrum transfer charges during operator mergers, it is believed that any ruling could be applied retroactively to the Idea and Spice deal, signed in June 2008. As per DoT proclaimaes that telcos would have to face charges for spectrum transfers, but no fees were specified at the time.
Idea’s acquisition on Spice is not yet approved, in addition to possible spectrum transfer charges, April’s new merger regulations also restrict operators which hold licences for the same region from merging for a period of three years from the date a licence is granted. According to DoT regulations Idea will surrender its licences for the Punjab and Karnataka circles, where both Idea and Spice hold licences, and Idea has agreed to this. Government to refund the INR3 billion it paid for the concession in January 2008, Idea requested.
Wireless Federation » Idea may have to pay additional fees for Spice’s acquisition (India)
Idea may have to pay additional fees for Spice’s acquisition (India)
- September 5th, 2008
- 7:43 am
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