Telcos Get 4-Year Moratorium On Spectrum Dues In Huge Relief

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Generous
bohemian

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The Union Cabinet on Wednesday cleared a relief package for the stressed telecom sector which entails relaxation to telecom companies on payment of their long outstanding dues, including a four-year moratorium on spectrum installment which is due in April 2022.

The package is aimed at giving relief to companies like Vodafone Idea, that owe a huge amount to the government in statutory dues, sources said.

The relief package cleared by the Cabinet, consists of a component where telecom companies may get an option to convert interest on their spectrum dues amounting to four-year moratorium, into government equity.

The package could signal a solution to the long standing financial crunch being faced by telecom companies and their inability to pay dues worth thousand of crores of rupees in terms of spectrum fees, to the government.

Sources said that with the help of the moratorium route, the adjusted gross revenue (AGR) could be rejigged and spectrum usage charges may be reduced.

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https://www.ndtv.com/business/telecom-firms-get...

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Deal Cadet Deal Cadet
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Pro Entertainer Pro Entertainer
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Kuchh nahi hone wala…. char saal baad phir royege ki paise khatam… sad toungueout

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Benevolent Benevolent
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kaash ye sarkar kehti ki corona aur mehegayi se aam admi ki halat khrab ha, is saal koi tax nahi.

Benevolent Benevolent
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When will the telcos (read AVOID, Jio still has a lot of credit left) afford some relief to the users?

Finance Mentor Finance Mentor
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Biggest benefit in this package is is change in agr definition.

Biggest beneficiary is airtel.

Generous Generous
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Nobody look at Airtel because it has no survival issues, people only see it as a major relief mainly for voda.

Duopoly is avoided for the time being

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Benevolent Benevolent
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Can’t understand the so called huge relief.(koi relief Nahi Hai ..tbh)

Spectrum payment 30years is for future auction. During moratorium interest rate is payable(2% above MCLR). AGR definition change is also prospective….

How does the package help player like Vodafone who is already under huge stress 🤔..

Finance Mentor Finance Mentor
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Voda only gets some time to pay dues with intrest. All other reliefs are prospective basis and helps strong players more than weak player.

And this relief package stops expected floor price increase. So it dose not help in arpu increase.

Only point might help voda is subscribers exudes might stop as of survival question might not arise in subscriber mind.

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Deal Cadet Deal Cadet
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Death of Vodafone Idea postponed. But it’s envitable or will get merged with BSNL/MTNL at later date. Super good for Airtel & Jio!

Benevolent Benevolent
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I invested heavily in Vodafone at a high price assuming it would grow further but it fell down to less than half the price I got it for. I could slowly average it out and got the average price lower by 15% by adding more small quantities. After the recent bull run it could finally come to a net positive state. Saved!

I have decided to still stay invested for a long term (2 to 3 years).

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