<p>A high level panel in Department of Telecom on Tuesday recommended a Rs 600 crore penalty on Idea Cellular for a merger deal with Spice Communications saying that the company's move had violated licence conditions in six telecom circles.<br /><br /></p>.<p>The committee, however, has given conditional go-ahead to the merger of the two licences in Karnataka and Punjab circles, sources said.<br /><br />“Idea can continue offering the services in Punjab and Karnataka circles by paying the penalty,” a DoT official said.<br /><br />In 2008, Idea Cellular acquired 41.09 per cent stake in Spice Communications. The companies merged in 2010, which resulted in overlapping of licences in six circles.<br /><br />At the time of the merger, both companies had licences for Andhra Pradesh, Delhi, Haryana, Maharashtra, Punjab and Karnataka circles. As per the rules, a telecom operator cannot hold more than 10 per cent stake in another operator in the same circle.<br /></p>
<p>A high level panel in Department of Telecom on Tuesday recommended a Rs 600 crore penalty on Idea Cellular for a merger deal with Spice Communications saying that the company's move had violated licence conditions in six telecom circles.<br /><br /></p>.<p>The committee, however, has given conditional go-ahead to the merger of the two licences in Karnataka and Punjab circles, sources said.<br /><br />“Idea can continue offering the services in Punjab and Karnataka circles by paying the penalty,” a DoT official said.<br /><br />In 2008, Idea Cellular acquired 41.09 per cent stake in Spice Communications. The companies merged in 2010, which resulted in overlapping of licences in six circles.<br /><br />At the time of the merger, both companies had licences for Andhra Pradesh, Delhi, Haryana, Maharashtra, Punjab and Karnataka circles. As per the rules, a telecom operator cannot hold more than 10 per cent stake in another operator in the same circle.<br /></p>
