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Relief for telcos: Cabinet approves two key measures


In a relief for the telecom companies, the cabinet has approved two key measures to facilitate investments and enhance ease of doing business in the telecom sector.

Firstly, the cabinet has extended the payments tenure for auctioned airwaves from 12 years to 16 years. This move will help increase the cash flow for telecom companies.

The other key measure includes relaxing spectrum holding caps from 25 percent to 35 percent in a service area. This will facilitate consolidation of telecom licensees and may also encourage participation in future auctions.

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In an interview to CNBC-TV18, Rajan Mathews, Director General of Cellular Operators Association of India (COAI), and Sanjay Kapoor, Former CEO of Bharti Airtel shared their views on the cabinet approvals and its impact on the telecom sector.

For full interview, watch accompanying video...