The government's decision to relax period for payment of spectrum dues and spectrum caps for telecom service providers may just offer a short-term relief to the industry reeling under financial stress. Though they will pace up merger and acquisitions in the telecom sector, an intense competition for a few more quarters will continue. An improved cash flow scenario for telecom players, though, would mean a fall in the government's budgeted revenue estimates from the sector. Morgan Stanley estimates Airtel's annual spectrum payments would reduce by Rs 1,400-1,700 crore, about 20% over FY19. Even Reliance Jio will be able to access 800 MHz spectrum of Reliance Communications now without breaching the cap.

Source: dna March 09, 2018 00:50 UTC