Bank guarantees not needed to cover for spectrum instalments: DoT

The telecom department has removed the need for financial bank guarantees to cover for annual spectrum instalments as well as performance bank guarantees for roll out obligations from future auctions. In a notice, it said it will accordingly change the eligibility conditions for participation in the next sale, so that bidders have sufficient financial capacity.

“For spectrum auctions to be held in the future, the requirement for the successful bidder to submit a financial bank guarantee (FBG) of an amount equal to one annual instalment to scrutinise the instalment; and to submit performance bank guarantee (PBG) for roll out obligation, etc has been dispensed with,” the Department of Telecommunications (DoT) said in the notification.