The Central government is considering a move to allow telecom companies to surrender excess spectrum purchased in auctions before 2022. The proposal, currently under discussion by the Department of Telecommunications (DoT) and industry officials, aims to maintain a competitive telecom sector with three private players—Reliance Jio, Bharti Airtel, and Vodafone Idea—alongside state-run BSNL. DoT has discussed the matter internally and with company executives, ET reported, citing sources as saying.
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Vodafone Idea to Benefit the Most
If implemented, the move could provide a major financial boost to Vodafone Idea, enabling it to save up to Rs 40,000 crore by returning unused airwaves. The company, struggling with heavy debt, had earlier benefited from a government decision in December to exempt it from providing bank guarantees for spectrum bought before 2021.
"Any decision on the issue will be taken after analysing the legalities and viewpoints of all players," the report quoted an official as saying.
"The department is now considering applying the policy of spectrum surrender acquired before 2022," an official said, according to the report.
Vodafone Idea reported a net loss of Rs 6,609 crore in the December quarter, slightly lower than Rs 6,986 crore a year ago. Its revenue from operations rose 4 percent to Rs 11,117 crore. Unlike Airtel and Jio, which have prepaid for most of their spectrum, Vodafone Idea stands to gain the most from this potential policy change.
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The government's move signals an effort to prevent market consolidation and ensure a level playing field in the telecom industry.
