DoT has asked Idea Cellular to surrender one set of the licences it holds for the Punjab and Karnataka circles, without getting a refund of the entry fee paid for these circles, in order to avoid over lapping of service areas.

DoT has asked Idea Cellular to surrender one set of the licences it holds for the Punjab and Karnataka circles, without getting a refund of the entry fee paid for these circles, in order to avoid overlapping of service areas. Idea Cellular, which had acquired a controlling stake in Spice Communications for around Rs 27 billion in June 2008, now holds two licences in these circles on account of this acquisition. With DoT ruling out any refund, Idea stands to lose about Rs 3 billion. DoT’s decision comes after Idea Cellular, in a communication to DoT, had offered to surrender the licences issued to it in January 2008 for Punjab and Karnataka.

One of the options being considered within the company was to demerge its licences in the Punjab and Karnataka circles into a separate entity, which would hold not more than 10 per cent stake in the demerged entity.