The Department of Telecommunications (DOT) is considering a scheme under which the spectrum received in the auction before 2022 can be refunded. With this, Vodafone Idea is expected to save Rs 40,000 crore. If the Department of Telecommates makes such a decision, Vodafone Idea will be able to return its additional spectrum. A media report quoted sources as saying that the Department of Telecommunications has discussed the matter internal and with company officials.
However, the report also said that no final decision has been taken in this regard at the moment and all legal aspects are being discussed. Any decision will be taken only after consulting all the parties.
Vodafone Idea got the biggest advantage
In fact, the government is emphasizing on maintaining and maintaining competition between 3 companies in the country’s telecom sector – Reliance Jio, Bharti Airtel and Vodafone Idea. Apart from this, there is also a government telecom company BSNL. The report said that the spectrum return policy will apply to all telecom companies. However, its biggest beneficiary will be a loss -making Vodafone idea, as its competitive companies Bharti Airtel and Reliance Jio have already paid most of their old dues by purchasing spectrum.
What will be the benefit of Vodafone-Idea from Rs 40,000 crore?
The government owes Rs 1.57 lakh crore to purchase spectrum on Vodafone Idea. A large part of it is a spectrum purchased before 2022. Analysts believe that if the company returns some spectrum, it will be able to save around Rs 40,000 crore. This amount can be used for annual payment.
Let us tell you that Vodafone Idea has to pay Rs 28,500 crore by the end of FY 2026. At the same time, about Rs 43,000 crore will have to be paid from the financial year 2027 to the end of the financial year 2031. By the end of December 2024, Vodafone Idea had cash and bank balance of Rs 12,090 crore. The company has 8,030 MHz spectrum in various bands. The company claims that they have the highest spectrum per million consumers in the industry.
What will be the effect on Airtel and Reliance Jio?
Also, Airtel may have some additional spectrum (2G and 3G) that can be surrendered. However, if Airtel has already paid and there is no provision of refund in the new policy, then it will not be of any use. Reliance Jio will have very few spectrum which can be surrendered.
