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Govt Grants Telecom Operators Two Year Moratorium on Payment of Spectrum Dues

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 21, 2019 11:22 AM 1 min read

Telecom operators get two year moratorium on payment of spectrum dues. 



Government grants telecom companies two years moratorium on spectrum dues payment. 

Sigh of Relief!: The government on Wednesday approved a moratorium of two years on payment of spectrum dues worth INR42,000cr. 


However, there was no relief granted on the INR1.47Lcr Adjusted Gross Revenue (AGR) demand following the Supreme Court verdict. ToI


For Some Perspective: In the September quarter, Vodafone Idea paid license fee and spectrum usage charges of INR1,114cr constituting as much as 37% of the operating loss - earnings before interest and tax - for the period.


The move surprisingly received rather lukewarm response from investors. In early deals on Thursday, shares of Bharti Airtel and Vodafone Idea were down 2-4% a day after the announcement. This is in contrast to the 2-35% rise in shares of Vodafone Idea, Airtel and Reliance Jio after they announced plans to raise tariffs - perhaps suggestive of the fact that the measure was rather "insufficient to alleviate the financial stress completely." Livemint


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