Any cash flow relief will significantly improve telcos’ health: Analyst on telecom package

New Delhi: Any immediate cash flow relief to the telecom sector will significantly improve the financial health and pave the way for the 5G auction, a senior analyst at Deloitte India said on Wednesday. The Union Cabinet has approved a package for the telecom sector, a senior DoT official said.

The package is aimed at giving relief to companies, such as Vodafone Idea, that have to pay thousands of crores in unprovisioned past statutory dues.

The wide set of measures proposed entail reforms for the ailing sector by way of granting a moratorium on unpaid dues, redefining AGR prospectively and cut in spectrum usage charges.