The spectrum auction is expected to be held in May-June next year and the DCC has not recommended any reduction in price of radiowaves, sources said.
To assume that incumbent TSPs are incapable of paying dues is naive at best and preposterous at worst. The government must avoid encouraging wilful and unethical defaulters by giving them relief to the detriment of those TSPs who have paid their dues lawfully for years
The Committee of Secretaries set up to investigate the reported stress in the telecom sector should first look into why these companies have high debt
Not only did the incumbents use dues owed to the government in funding this expansion, they also risked the financial health of PSU banks and their investors by not providing for liabilities on their balance sheets
The very talk of failure seems to be some kind of negotiating tactic. After all, incumbents can raise tariffs to improve their profitability. There are also the possibilities of equity infusions and asset monetisation to raise the necessary money for the government’s dues.
Relief to Bharti and Vodafone will also open up the government to charges of favouritism. In the Darwinian world of telecom services in India, many companies have fallen by the wayside, including biggies such as Telenor and Etisalat. They faced the same problems and failed, but the government didn’t step up to bail them out at that time
With two concurring judgments (2011 & 2019) from the Supreme Court, the government should not fall into trap of the two telcos and enforce the implementation of orders
Telecom sector has been battered by falling tariffs, eroding profitability, and mounting debt, in the face of stiff competition triggered by disruptive offerings of Reliance Jio, owned by richest Indian Mukesh Ambani.
Banks, especially government-backed ones, are reluctant to lend further to telecom companies since they are already under a lot of debt
"Spectrum above 3000 MHz will be put up for auction for the first time in the forthcoming auction," telecom minister Manoj Sinha said in a written reply to the Lok Sabha.
On the industry opinion that timing is not conducive now for holding spectrum auction given the financial stress, Sharma said decision on all those aspects will be taken after a considered view.
Ambani said the company had also run a process, run by real estate consultancy Jones Lang LaSalle, to select a contractor to develop and monetize 20 million square feet at the knowledge city
The plan involves exiting strategic debt restructuring (SDR) and monetising some of the company's assets, including transfer of spectrum liabilities by March 2018.
This is very progressive move from TRAI and it makes the consolidation more effective, said Singhal, National Telecom Leader, EY
While the Department of Telecom (DoT) has proposed to hold auction in 2017, the Telecom Regulatory Authority of India has sought opinion on when the next round of auction should be held and whether it should done in a "phased manner".
The policy should have some "permanent fixes" for the failing financial health of the sector and the industry cannot be treated "as a place to go for revenue", COAI Director General Rajan Mathews told PTI.
The paper will seek views on pricing of spectrum, block size to be auctioned in each band, roll out obligation and also whether the ecosystem is now developed or not to accommodate new technologies
Bharti Airtel in an investor call said the sector is "heavily taxed" and that the levies like licence fee, spectrum usage charges and service taxes add up to a "very substantial number".
"The timing of the auction should be later part of 2018 or early 2019," COAI director general Rajan Mathews told PTI.
The Department of Telecom (DoT) has sought Trai's views on spectrum price for various frequencies, including premium airwaves in the 700 MHz band which remained unsold in the last auctions in October 2016.
Over the last two years, the industry’s debt has nearly doubled to Rs 4.4 lakh crore, thanks to two big spectrum auctions.
Idea Cellular on Monday announced its much anticipated merger with Vodafone India and Vodafone Mobile Services Limited, its wholly-owned subsidiary.
Vodafone India and Idea Cellular today announced their long-anticipated merger, nearly a month after acknowledging that talks were on to join hands.
Regulator TRAI today said it will be "happy" to give its recommendations to the government on spectrum auctions, including timing and pricing aspects, as and when the matter is referred to it.