DoT may favour waiving spectrum bank guarantees
Subscribe to enjoy similar stories. New Delhi: The department of telecom (DoT) may take a favourable view on waiving bank guarantees due from telcos for spectrum purchased till 2022, a move that could help the beleaguered Vodafone Idea Ltd the most. Prior to 2022, telcos had to submit a bank guarantee while buying spectrum, a rule designed to ensure they make regular annual payments for the airwavespurchased.
The demand for a waiver was under consideration, according to two senior officials in the department. There was room to allow relief since the 2024 auction did not have the requirement, one of the officials said on the condition of anonymity. “A precedent to this effect also exists, when the government in 2017 agreed to increase the number of annual payments for spectrum bought in prior auctions, from 10 to 16 years.
A lower interest on penalties was also agreed upon by the government," another official said, also asking not to be named. Also read | ‘Telcos need to be sustainable to invest in networks, ensure better services’ Vi will be the biggest beneficiary of such a waiver as it's supposed to arrange for bank guarantees worth ₹27,000 crore within the coming couple of months.It is saddled with statutory dues worth ₹2.1 trillion that prevented it from investing in 4G and 5G networks. Having raised funds from equity, executives at the No 3 carrier said at an investor call that its discussions with the government on waiving the guarantees were developing positively, with solutions expected in the coming weeks.
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