16-year term for spectrum pay

16-year term for spectrum pay”

The Telecom Commission has approved the extension of time period for the payment of spectrum bought in auctions by telcos to 16 years from the existing 10 years. This is being done by replacing the prime lending rate (PLR) with marginal cost of fund-based lending rate (MCLR) to calculate the interest owed by telecom operators for delayed payment of licence fee and spectrum usage charges, said a person with direct knowledge of the matter.

Official sources said that the TC made a decision to go ahead with key recommendations of the inter-ministerial group (IMG) that had been formed to give suggestions on providing relief to stressed telecom companies. The telecom industry's total debt stands at around Rs 4.60 lakh crore.

The cabinet will next vet these approvals, officials said.

Laying the groundwork for the ambitious new National Telecom Policy (NTP), the Telecom Commission, has defined the guiding principles for the policy, which include focus on the telecommunications sector as an enabler of economic growth, protection of consumer interest by ensuring affordability, quality of services, protection of data and privacy, a senior official at the Department of Telecommunications (DoT) said.

The replacement of PLR with MCLR was also recommended by the IMG to ease the financial stress of telecom firms. Since the entry of a new player Reliance Jio, the indutry's revenues has been on a declining trend with margins dipping and tariffs coming to a new low where voice calls are free and data is being offered at dirt cheap rates.

"Telecom Commission has approved IMG recommendation to extend spectrum payment period to 16 years from 10 years at present".

The commission also approved the installation of 2,817 mobile towers in the North East by BSNL with an outlay of about Rs 2,258 crore.

The IMG also okayed TRAI's recommendation to mandate that every building plan should have duct for telecom cable and the completion certificate be given only if it has been incorporated.

The highest decision making body of the sector, has sent one of the recommendations of relaxing cap on spectrum in a band to the Telecom Regulatory Authority of India (Trai) for their views.

The inter-ministerial panel has given nod to grant Rs 1,231 crore to the Telangana government for the roll-out of the second phase of Bharat Net project in the state along with its drinking water project Mission Bhagiratha.

Commenting on the developments, Rajan S. Mathews, Director General, Cellular Operators' Association of India (COAI) told IANS: "We appreciate the government for addressing our concerns".

"The move certainly helps the industry as it will improve the cash flow in the near term. It will ease the payment burden". Analysts say that the delayed payments will give "some reprieve" to the troubled telcos, though adding that "a significant relief would have been a reduction in the licence fee and/or the spectrum usage charge (SUC) that companies have to pay to the government".

Like this


30 September 2017
Jim Carrey claims he was extorted by ex-girlfriend's mother
Actor Jim Carrey is likely to face a trial over the death of his ex-girlfriend, Cathriona White .Carrey at Ms White's funeral. The couple was back together for much of that February but split up sometime after Valentine's Day, the filing claims.

30 September 2017
Shania Twain Stuns in 'Swingin' with My Eyes Closed' Video
Twain's ex was allegedly having an affair with Marie-Anne Thiebauld, Twain's assistant and best friend at the time . This cover image released by Mercury Nashville shows "Now", the latest release by Shania Twain .

30 September 2017
Russian Broadcaster Defends Its Twitter Ad Purchases
Facebook also found another $50,000 spent on "potentially politically related ad spending". Peskov, a spokesman for President Vladimir V.

30 September 2017
Rockies need 1 more win to clinch wild-card
Louis was eliminated from the wild-card derby on Thursday when it a dropped a 2-1, 11-inning decision against the Chicago Cubs. The Milwaukee Brewers , much like the Minnesota Twins, were not a team I expected to see making a push for October.

30 September 2017
Marlins slugger Stanton hits 58th home run
No. 58 made him the first player since 2006 to reach the 58 home run plateau when the Philadelphia Phillies' Ryan Howard did so. Miami: Starters are getting games to rest in the final weekend of the season and Friday was CF Christian Yelich's turn.

30 September 2017
Pakistan to Give US List of Terrorists Next Month
Iran's Chabahar port lies outside the Persian Gulf and is easily accessed from India's western coast, bypassing Pakistan. But no nation can have the power to dictate terms or a veto when its comes to Afghanistan's interests and foreign policy.

30 September 2017
Gary Oldman Is Eerily Convincing As Churchill In Darkest Hour
Now Gary Oldman throws his homburg into the ring with " Darkest Hour ", and it's already earning him best actor Oscar talk. Keep up-to-date with DARKEST HOUR on the Universal Pictures Facebook , Twitter and YouTube pages.

30 September 2017
Chelsea's Eden Hazard must 'exploit his talent', says Antonio Conte
He's a player who loves to play football and enjoys playing football. "It's important to understand when there's room to travel". But Conte feels the 26-year-old is ready to take the next step in the biggest season of his career.

30 September 2017
Decomposed body of 6-yr-old found in Delhi, one held
A 19-year-old man was on Friday arrested for allegedly kidnapping and killing a six-year-old boy in southeast Delhi, police said. However, it was later revealed that Rohit had strangled the child for 10 minutes, after which he started to bleed from his nose.

30 September 2017
May plays down UK-US trade war over Bombardier tariffs
The U.S. government is scheduled to announce its preliminary anti-dumping decision on Boeing's petition next Wednesday. The completion of the sale of Q400s in India could be a sign of future promise for the Canadian firm in Asian markets.