Union Communications Minister Jyotiraditya Scindia told reporters on Tuesday that any relief on bank guarantees for spectrum allocation would be applied across the board for all telecom players. However, he noted that no decision has been made yet, according to an ANI report.
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Airtel and Vodafone Idea's Request
Earlier, Bharti Airtel had asked the Department of Telecom (DoT) to ensure equal treatment and a non-discriminatory framework in any potential waiver of spectrum bank guarantees (BGs). Vodafone Idea has requested a waiver of the bank guarantee requirement due to financial constraints. Airtel has reportedly asked the DoT to treat all players equally, irrespective of their "financial health."
"I don't think any step the government takes is going to be company-specific, because it's a sectoral step," said Scindia, according to the report.
Scindia's Remarks on BSNL's Revival
When asked about a revival package for BSNL, Minister Scindia explained that BSNL is fully government-owned, so any relief package provided to it cannot be compared to those for private sector companies.
"All the assistance that has been given has been given from a sectoral point, except the case of BSNL, which is 100 per cent Government company, and that too, as I've mentioned to you many times before, for the first time in India's history, probably on the global perspective, you have a company that has come up with its own Indigenous stack," said the minister, the report further added.
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Revival Packages for BSNL
The government has announced three revival packages for BSNL since 2019. In October 2019, a Rs 69,000 crore package was announced to support BSNL's revival.
In July 2022, the government approved a second package worth Rs 1.64 lakh crore, aimed at upgrading BSNL's services, allocating spectrum, easing its balance sheet, and merging Bharat Broadband Nigam Limited (BBNL) with BSNL to expand its fiber network.
In June 2023, the Union Cabinet approved a third revival package for BSNL amounting to Rs 89,047 crore. This package includes the allocation of 4G/5G spectrum to BSNL and an increase in its authorised capital from Rs 1.50 lakh crore to Rs 2.10 lakh crore.
Also Read: PNB Turns Down Vodafone Idea’s Request for Fresh Financing: Report
Government's Support for Telecom Sector
Scindia also highlighted that India’s telecom sector has received tremendous support from the government over the past two to two and a half years. There are four telecom players in the market, which is necessary from a sectoral point of view. He emphasised that customers must have choices, which India is giving.
