"The decision to extend the deferred payment of spectrum from the current 10 equal annual instalments to 16 equal annual instalments will ease the cash flows in the initial years. However, since only the spectrum payment tenure is being extended, no real tangible financial benefit will accrue to the industry," Rajan S. Mathews, Director General, Cellular Operators Association of India (COAI) said in a statement. ""Only in a conducive and mutually supportive environment can the industry continue to provide value and new technology to customers, as well as enhanced revenue to the Government," Mathews said. He remained hopeful for urgent and immediate substantive relief measures. Extension of payment tenures and the cut in interest rates on penalties had been suggested by an inter-ministerial group (IMG) that was constituted last year to suggest measures to reduce financial stress in the telecom industry.

Source: Economic Times January 12, 2018 03:32 UTC