In a significant development, the Central government is planning a move to allow telecom companies to surrender their excess spectrum bought in auctions before 2022, a report by The Economic Times said.
This is likely to provide a major boost to Vodafone Idea, which can save up to Rs 40,000 crore by giving up its excess airwaves, the newspaper said.
The report, citing sources, further said that the department of telecommunications (DoT) has discussed the plan internally and with industry officials.
The plan is part of the government’s aim of keeping a competitive private sector with three major players including Reliance Jio, Bharti Airtel and Vodafone Idea along with a state-run Bharat Sanchar Nigam Ltd (BSNL).
Moneycontrol could not independently verify the report.
The move, if implemented, will benefit Vodafone Idea the most as its bigger rivals Airtel and Jio have prepaid for most of their purchases, the report said.
Earlier in December, Centre had exempted the struggling telecom operator from bank guarantees for spectrum bought in auctions held before 2021. Vodafone Idea termed the move as a “big relief for telecom companies”.
The firm’s net loss had narrowed in the December quarter marginally to Rs 6,609 crore over Rs 6,986 crore in the year-ago period.
It’s revenue from operations jumped 4 percent to Rs 11,117 crore in the December quarter as against Rs 10,673 crore in the same period of the previous financial year.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
