New Delhi, January 7
Telecom operator Airtel will not avail the option of conversion of the interest on deferred spectrum and AGR dues to equity, under the reforms package, according to a regulatory filing by the company on Friday. Airtel said it has informed the Telecom Department about its decision. — PTI
“… We wish to inform you that the company has confirmed to DoT (Department of Telecom) that it will not avail the option of conversion of the interest on deferred spectrum and AGR (Adjusted Gross Revenue) dues into equity,” Airtel said in a BSE filing.
The telecom sector got a shot in the arm with the government last year approving a blockbuster relief package that includes a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid and 100% foreign investment through the automatic route.
The reforms measures, aimed at providing relief to telecom service providers such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues, also included the scrapping of Spectrum Usage Charge (SUC) for airwaves acquired in future spectrum auctions.
Bharti Airtel and Vodafone Idea have already said they will opt for the four-year moratorium on payment of dues. The moratorium is expected to free up cash flow to the tune of thousands of crores for the telcos. — PTI
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