Updated Dec 28, 2024 22:29 IST
Vodafone Idea Spectrum Dues: This is a significant move by the government aimed at supporting the telecom industry in the country.
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Vodafone Idea (Vi) announced on Saturday, December 28, that it has received a letter in this regard from the Department of Telecommunications (DoT).
“According to the 2021 telecom reform package, there was no need to provide bank guarantees (BGs) for spectrum auctions held after the reform package, as the industry has matured and past BG practices are no longer necessary.” VI said in a statement. .
Recently, the Department of Telecommunications (DoT) has announced that the spectrum auctions held before the reform package, i.e. 2012, 2014, 2015, 2016 and 2021, from the date of allocation to the last day of three months after the due date of allocation. Calculating the daily amount for the frequencies used up to the next installment says it will be less than the payment made by the carrier on an NPV basis.
Prior to this reform, VIL was required to provide a total BG of Rs 24,800 crore for each spectrum installment 13 months before the expiration of the above auction deadline, VI said.
“According to our understanding of the terms and conditions, VIL is not required to provide BG for the 2012, 2014, 2016 and 2021 auctions among the five auctions mentioned above,” it added. This will be a one-time partial shortfall for the 2015 auction only. In this case, the NPV of all payments made will be less than the daily value of the spectrum used.
It added: “We are in discussions with the Department of Transport to determine the final amount of this partial shortfall for the 2015 auction.”
Furthermore, noting that the BG exemption action is a clear sign of the government’s continued support for the telecommunications industry, Mr. Vi said: India. “
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