DoT to oppose spectrum sale of bankrupt telcos

NEW DELHI | MUMBAI: The department of telecommunications (DoT) plans to oppose the sale of airwaves held by bankrupt telcos during the insolvency resolution process, a move that will make Aircel and Reliance Communications less attractive to buyers and hit their lenders.

A senior DoT official told ET that the department will take all legal steps, including moving the Supreme Court if necessary, to ensure that that the resolution professional doesn’t get the right to sell spectrum during the bankruptcy proceedings. To begin with, DoT is expected to state its position at the ongoing hearings of the Aircel bankruptcy process at the National Company Law Tribunal (NCLT).

“DoT’s view is that this spectrum belongs to the government and it does not come under the definition of property of the telco,” said this official.