Paving the way for consolidation in the telecom sector, the Union Cabinet on Wednesday approved an increase in overall spectrum holding limit to 35%. The debt payment extension will have only a minimal benefit through cash flow relief but total payments will increase. With restructuring of deferred payment liability, the cash flow of telecom service providers will increase providing them some relief, the statement said. The revision in limits for spectrum cap holdings will facilitate consolidation and may encourage participation in the future spectrum auction. The relief measure of extended time period for spectrum payment was recommended by an Inter-Ministerial Group which was formed last year to look into ways of easing out stress in the telecom sector.

Source: dna March 08, 2018 01:41 UTC