Help to telecom sector might be on Union Cabinet agenda today

The Union Cabinet is likely on Wednesday to consider the recommendations of an inter-ministerial group (IMG) on how to ease financial stress in the telecom sector.

The proposals include easing of spectrum holding limits for telecom companies, raising the tenure of spectrum payment to 16 years and changes in interest rates. If approved, these should ease the financial pressure on operators in the short term. Also, to help entities under stress to exit the sector, while providing an opportunity for larger ones to consolidate.

Telecom Regulatory Authority of India (Trai) had recommended raising the 25 per cent overall spectrum holding limit to