Telcos Can Now Breathe As IMG Recommends Spectrum Auction for Next Fiscal: Report

The Inter Ministerial Group (IMG) is reportedly not looking to hold the next round of spectrum auction this financial year, keeping the financial stress in the telecom sector at the moment.

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A report from PTI says that “inter-ministerial group (IMG), looking at measures to mitigate financial stress in the telecom sector, has recommended that the new round of spectrum auction be held in the next financial year and not the current one.”

The report also says that IMG has also recommended that the payments for spectrum be taken in 16 instalments (16 years) as opposed to the current 10 years practice. It is also revealed that IMG has favoured a cut in interest rates on penalties by switching from PLR based on MCLR based rates, which could give some relief of about two percentage points in the current scenario.

“The IMG has recommended spectrum auctions for the next fiscal, and making available 20 MHz of radio waves in 2300 band before the auction,” said the source to the publication.

Furthermore, the telecom commission will meet on September 8 to ponder the recommendations given by the IMG. A person familiar with the matter pointed out that IMG has not made any recommendation on the interest levied for spectrum auction payment. “The IMG has recommended a reduction in licence fee and spectrum usage charges under the new telecom policy,” revealed the source to PTI.

Trai recently released a consultation paper on spectrum auction to be held this fiscal. However, IMG is now looking to not conduct any spectrum auction in the near future.