Govt bails out telcos with 4-year gap in spectrum, AGR payouts

NEW DELHI: The Union Cabinet on Wednesday cleared a reform-oriented bailout package for the beleaguered telecom industry – freeing up cash for the financially stretched companies by throwing in a four-year moratorium on spectrum and AGR payments, while also slashing charges and offering a lenient definition of revenue recognition to hasten the transition towards 5G.

The move, which was anticipated after Vodafone Idea appeared headed towards bankruptcy, will benefit all players, including Bharti Airtel and Reliance Jio. It had been in the works for the past few months but was expedited as then Vodafone Idea chairman Kumar Mangalam Birla virtually threw in the towel amid mounting losses and heavy debt. was the first to report on the series of relief measures.