Relief for sector: Telcos may get 2-year holiday on spectrum payments

MUMBAI: The telecom department is working on a plan to provide a two-year holiday on payment of spectrum dues totalling over Rs 40,000 crore by the three private telcos, a senior official said. If implemented, this will be the second major step taken by the government in two years to ease the burden of the sector that has debt of over Rs 7 lakh crore, amid pressure on revenue and profitability due to price competition.

“The request from one of the telcos for a two-year (payment) moratorium is being examined. However, the benefit cannot be given to only one operator. So all telcos will be offered the holiday,” said the official. Any decision will be subject to approval by the FM.