According to Indian Banks’ Association estimates, the total liabilities of the telecom sector stood at Rs7.75 trillion as of 31 March, of which bank borrowings and liabilities towards spectrum payment to the telecom department stood at Rs5.80 trillion. Photo: Indranil Bhoumik/MintNew Delhi: Indian Banks’ Association (IBA) has sought to ease the financial stress on telecom companies by suggesting to the government that it refund operators any excess upfront payment made for surrendered spectrum and scrap deferred payment liabilities related to the airwaves. According to Indian Banks Association estimates, the total liabilities of the telecom sector stood at Rs7.75 trillion as of 31 March, of which bank borrowings and liabilities towards spectrum payment to the telecom department stood at Rs5.80 trillion. Moreover, despite surrendering spectrum, it is still liable to pay all future instalments related to the spectrum purchase,” a regulatory officer at a telecom operator said. The Telecom Commission had at the time also sought the Telecom Regulatory Authority of India’s (Trai) recommendations on revising spectrum caps for operators.

Source: Mint December 06, 2017 19:41 UTC