Idea Cellular has proposed to the Department of Telecommunications (DoT) that Bharti Airtel and Vodafone India be re-allotted spectrum in the 900 MHz which they currently hold while the remaining unallocated frequency airwaves in the band be awarded to Idea Cellular, in accordance with the auction results. The company is of the view that such allocation will help avoid any disruption of services and Idea would also get spectrum in the 900 MHz band.

The company has also asserted that any delay in allocation beyond November 30, 2014 would result in delay in the launch of services and the company may incur loss on account of interest costs without earning any corresponding revenue. At present, the interest cost incurred by the company is Rs 10.2 million per day.

Idea has also raised concerns over extension of Bharti Airtel and Vodafone India’s licences in the Delhi circle beyond November 2014. Airtel and Vodafone had recently approached DoT, requesting an extension of licences by at least six months to reconfigure their networks to new spectrum won in the February 2014 auction.

Idea Cellular is of the view that granting an extension to the two telecom operators violates auction rules and would negatively impact its business. If the licence period is extended, it would affect the allocation of spectrum won by Idea in the same auction because part of spectrum in the 900 MHz band is currently held and used by Airtel and Vodafone.