DoT EASES NORMS TO PROVIDE RELIEF

New Delhi, March 19: The Department of Telecom on Monday amended licence norms of service providers to increase number of instalments for spectrum payments and radiowaves frequency holding limit to provide relief to the sector reeling under deep financial stress.

“The Licensee may opt one time for higher number of instalments including in the current financial year 2017- 18 ( maximum 16 instalments) for deferred payment liabilities as per Notice Inviting Application ( NIA) for auctions conducted for award of spectrum in the years 2012, 2013, 2014, 2015 and 2016,” a DoT note on licence amendment said.

Before this amendment, a portion of spectrum auction amount used to be taken as upfront payment by DoT and the balance, after a two- year moratorium, was paid out every year — 10 instalments in all.

The amendment is part of relief measures approved by the Cabinet early this month for the sector reeling under debt of 7.87 lakh crore and suffering from reduction in margins due to cut- throat competition induced with entry of Reliance Jio.

There will be no change in value and interest rate that telecom companies have to pay for the spectrum.

The total amount that telecom operators will pay for the spectrum will be higher by ` 74,446.01 crore till 203435 if they opt for more number of instalments.

It will be optional for telecom operators to choose between current number of instalments and increased number of instalments. “The instalments that have already been paid shall not be modified,” the note said.

The DoT has also amended spectrum holding limit of telecom operators as per the cabinet decision, which will provide exit route for loss making mobile service providers.