‘Telcos opting for moratorium to see bank guarantee fall to 20%’

Telecom service providers which opt for the moratorium being offered by the Department of Telecommunications (DoT) will see their bank guarantee requirements come down to only 20 per cent of what they are required to pay currently, thereby freeing them of non-funded debt, sources in the know of the development said.

“So, say Vodafone Idea (Vi) opts for the moratorium. For spectrum they will have to furnish no bank guarantees for the next 2 years and eleven months. So that means, out of Rs 23,000 crore, their bank guarantees are worth Rs 15,000 crore for spectrum. This means it will come down to roughly Rs 200-300 crore, which is for the 2021 spectrum auctions,” a senior government official said.