Bharti Airtel has reportedly urged the Department of Telecommunications ( DoT ) to ensure a level playing field for all telecom operators. According to a report in Economic Times, the letter comes as the government considers Vodafone-Idea 's (Vi) plea for a waiver of bank guarantees (BGs) on spectrum payments.
What the Airtel letter "says"
In the letter to DoT, Airtel said that it supports the proposed waiver, but any regulatory reform must have a "non-discriminatory" framework across all telcos, without considerations such as the financial health of particular operators. The ET report says quoting officials aware of the matter.
Airtel reportedly highlights its own significant spectrum acquisitions and the subsequent BG obligations, arguing for a consistent regulatory framework. Vodafone-Idea, grappling with financial challenges, has sought government intervention to alleviate its burden and secure additional credit from banks. The proposed BG waiver would provide much-needed relief for the struggling telco.
Airtel telco reportedly cited the 2021 telecom reforms which treated all the telecom players equally with no special benefit to any one company.
Earlier this year, the Cellular Operators Association of India (COAI), representing all private telcos, too had written to the DoT, seeking to do away with the need of BGs for auctions conducted before 2022. The DoT is currently reviewing the BG waiver proposal, with a draft cabinet note suggesting a potential compromise. Under this proposal, telcos could opt for a BG waiver in exchange for pre-paying three additional months of spectrum payments.
Airtel, Reliance Jio , Vodafone-Idea: Who owes how much
The amount of Reliance Jio's annual bank guarantee (BG) requirement for past auctions could be to the tune of Rs 4,000 crore while the amount for Airtel could be around Rs 3,000 crore. Both the companies have been clearing past spectrum dues by pre-paying instalments in a bid to save interest costs. Having raised Rs 24,000 crore via equity, Vodafone-Idea now wants to raise Rs 25,000 crore more via loans and another Rs 10,000 crore in BGs or letters of credit to continue its capital expenditure to compete effectively against Airtel and Reliance Jio.
What the Airtel letter "says"
In the letter to DoT, Airtel said that it supports the proposed waiver, but any regulatory reform must have a "non-discriminatory" framework across all telcos, without considerations such as the financial health of particular operators. The ET report says quoting officials aware of the matter.
Airtel reportedly highlights its own significant spectrum acquisitions and the subsequent BG obligations, arguing for a consistent regulatory framework. Vodafone-Idea, grappling with financial challenges, has sought government intervention to alleviate its burden and secure additional credit from banks. The proposed BG waiver would provide much-needed relief for the struggling telco.
Airtel telco reportedly cited the 2021 telecom reforms which treated all the telecom players equally with no special benefit to any one company.
Earlier this year, the Cellular Operators Association of India (COAI), representing all private telcos, too had written to the DoT, seeking to do away with the need of BGs for auctions conducted before 2022. The DoT is currently reviewing the BG waiver proposal, with a draft cabinet note suggesting a potential compromise. Under this proposal, telcos could opt for a BG waiver in exchange for pre-paying three additional months of spectrum payments.
Airtel, Reliance Jio , Vodafone-Idea: Who owes how much
The amount of Reliance Jio's annual bank guarantee (BG) requirement for past auctions could be to the tune of Rs 4,000 crore while the amount for Airtel could be around Rs 3,000 crore. Both the companies have been clearing past spectrum dues by pre-paying instalments in a bid to save interest costs. Having raised Rs 24,000 crore via equity, Vodafone-Idea now wants to raise Rs 25,000 crore more via loans and another Rs 10,000 crore in BGs or letters of credit to continue its capital expenditure to compete effectively against Airtel and Reliance Jio.
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