Reliance Communications Asks DoT to Renew Telecom License for 20 Years

To retain rights over the spectrum and keep the enterprise business alive, the bankrupt entity Reliance Communications (RCom) has requested the telecom department to renew its telecom license for a period of 20 years. In response, the Department of Telecommunications (DoT) has demanded the ownership details of Rcom. As reported by ET Telecom, Reliance Communications is managed by a resolution professional (RP) Deloitte as part of the bankruptcy process under the IBC. One of the officials who is aware of the information stated that the spectrum license of RCom would expire in July. The lenders of the entity who will come forward and accept the ownership will be liable to respond to queries revolving around the payment of statutory dues.

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DoT Can Recover Dues by Allowing RCom to be a Licensed Entity

Even though Reliance Communications shut down its smartphone business back in 2017, the company is still running the business for enterprise customers. To date, RCom has not paid a single penny out of its Rs 26,000 crore AGR dues. There are multiple hurdles for the telecom department to recover their dues.

One of the major ways through which DoT can recover its dues is by allowing RCom to be a licensed entity. If DoT terminates the license of the company, it will lose the right to use over its residual spectrum. Further, if the spectrum will not be sold, the resolution process will break apart. Currently, RCom holds airwaves in the 850 MHz band in 14 telecom circles.