Airtel Calls for Equal Treatment as Vodafone Idea Seeks Waiver on Bank Guarantees: Report

Bharti Airtel has requested the Department of Telecommunications (DoT) to ensure a non-discriminatory framework in any potential waiver of spectrum bank guarantees (BGs), amidst Vodafone Idea’s appeal for financial relief. Airtel has reportedly asked the DoT to treat all players equally, irrespective of their “financial health”, according to an ET report.

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Airtel’s Request to the DoT

In a letter to the DoT, Airtel said it supports the proposed waiver, but any regulatory reform must have a “non-discriminatory” framework across all telcos, without considerations such as the financial health of particular operators, the report said, citing officials aware of the development.

Vodafone Idea’s Financial Struggles

Vodafone Idea, citing significant financial challenges, is reportedly seeking the waiver to alleviate the need for BGs, which it expects would enable banks to extend more credit to the struggling company. The telco must submit BGs totalling approximately Rs 24,700 crore in the coming months, compared to Airtel’s Rs 3,000 crore and Jio’s Rs 4,000 crore requirements.

According to the report, Airtel highlighted that it, too, has invested heavily in spectrum acquisitions and will soon need to provide BGs for airwaves obtained in auctions before 2021. The Cellular Operators Association of India (COAI) has also called for the elimination of BG requirements for auctions conducted prior to 2022.

Airtel reportedly cited the 2021 telecom reforms, which treated all the telecom players equally with no special benefit to any one company.