Spectrum Payment

Debt-ridden telecom operator Vodafone Idea on Tuesday said it has been in discussion with the Department of Telecom for the waiver of bank guarantee which the company is required to submit a year before the due date for payment of spectrum acquired prior to 2022. The Department of Telecom (DoT) has asked the telco to submit bank guarantees as an assurance for the spectrum payment of Rs 24,747 crore due in September next year. As per norms, bank guarantees need to be submitted at least one year before the payment due date. "The company has made detailed representations to the DoT and continues to be engaged with DoT for removal of the bank guarantee requirements for spectrum acquired before 2022. This is also an industry ask," Vodafone Idea (VIL) said in a regulatory filing. According to sources, the DoT has also reached out to the finance ministry on the issue of giving exemption to telcos from submitting bank guarantees for spectrum payment dues. VIL has sought relief citing the

The draft telecom bill also recognised that the spectrum is a valuable resource and provided for the assignment of the spectrum for the public good

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No government support or intervention in the matter of tariffs should be considered, says Telecom Watchdog.

Licence fee is payable in four quarterly instalments during each financial year

In the morning session, shares of the company opened at Rs 444.35 and fell 4.71 per cent to intra-day low of Rs 430. The stock settled 4.34 per cent down at Rs 431.70 on the BSE

Vodafone Group officials also met Commerce and Industry Minister Piyush Goyal during the day

The Telecom Commission (TC) has approved an increase in the timeframe for deferred spectrum payments to 16 years, as well as a change in calculation of interest for delayed payments.However, telecom companies will not get any relief on spectrum charge or licence fee. The industry says the TC's measures will give some relief to operators in the long run but the current problem of financial stress remains.The government had formed an inter-ministerial group (IMG), to address the financial stress in the sector and it had recommended all these measures. The TC in its earlier meeting had sought clarifications on some points. After getting these, Friday's decisions were taken. The Cabinet will now take a final call. A source said there would be no further relief for telecom operators from the IMG.According to sources, the TC approved an increase in the tenure for deferred spectrum payment to 16 years from the current 10 years. The TC had asked IMG if it should be 12 or 14 but after ...