DoT may waive off bank guarantees of telcos for 2022 spectrum sale: Report

Before 2022, telecom operators were required to submit a bank guarantee to buy spectrum, Mint said, adding that the rule ensured regular annual payments for airwaves.Before 2022, telecom operators were required to submit a bank guarantee to buy spectrum, Mint said, adding that the rule ensured regular annual payments for airwaves.

The telecom department is likely to waive off bank guarantees due from the spectrum sale of 2022 for all the operators, business daily Mint reported, citing sources, on September 27.

Vodafone Idea, which is India’s third-largest telecom operator, could be the biggest beneficiary if the government decides to approve the proposal, the paper said.

Before 2022, telecom operators were required to submit a bank guarantee to buy spectrum, Mint said, adding that the rule ensured regular annual payments for airwaves.

Moneycontrol could not independently  verify the report.

Earlier, it was reported in June that the debt-ridden telco had reached out to the telecom department to seek waiver on a financial bank guarantee of Rs 24,747 crore for spectrum payment due in September 2025.

The FBG needs to be deposited one year before the due date as per spectrum auction rules,” a source, who did not wish to be identified, told news agency PTI. An email query sent to Vodafone Idea elicited no response.

The payments are for frequencies that VIL purchased in auctions that were conducted before 2022. VIL in 2022 opted for a four-year moratorium to pay for the spectrum allowed under a government relief package.

The company also opted for a moratorium on AGR payments. It ends in March 2026. Providing a blow to the telcos, the Supreme Court on September 19 rejected pleas to re-compute adjusted gross revenue dues.

With PTI inputs