DoT Can Only Give Suggestions, Relief Package Dependent on Finance Ministry

Telecom operators in India have hit rock bottom because of the AGR dues burden and financial liabilities. To aid the telecom sector, a relief package is expected to be rolled out by the government to help financially burdened telcos like Vodafone Idea, Bharti Airtel and Reliance Jio. As noted by unnamed sources in the Department of Telecommunications, telcos can only offer suggestions regarding the relief package. The perfect relief package will depend upon the Finance Ministry along with the approval of the Cabinet. As reported by Hindu Business Line, the Department of Telecommunications (DoT) has already shared recommendations for a bailout of the telecom sector, including a two-year extension to the current moratorium.

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Vodafone Idea Might Trade its Excess Spectrum to Earn Some Revenues

Among all the telecom operators, Vodafone Idea has been the most affected telco in AGR verdict and financial burden. If a relief package will be rolled out by the government, it is likely to primarily focus on Vodafone Idea because of its financial results. The telco giant might engage in trading its excess spectrum to earn some revenues and reduce the burden. In case you are not aware, Vodafone Idea holds 1,849.6 Mhz of spectrum across different frequency bands, of which 1,714.8 can be used for the deployment of 4G or 5G networks. It is speculated that the government might bring a newcomer to the Indian telecom space and give free spectrum to revive the telecom sector. Also, the government might apply license fees of average gross revenue as soon as the company hits the market share.