Telecom Boost: Government Waives Bank Guarantee for Pre-Reform Auctions

Vodafone Idea announced the Telecom Department's decision to waive bank guarantees for spectrum auctions held prior to the 2021 reform package, boosting 4G and 5G investments. Previously, a guarantee of Rs 24,800 crore was required for payments. The waiver reflects ongoing government support for telecom growth in India.

The Department of Telecommunications has given a significant relief to the telecom sector by waiving the need for bank guarantees for spectrum auctions held before the 2021 reform package, Vodafone Idea announced.

Previously, telecom operators were required to provide bank guarantees aggregating approximately Rs 24,800 crore ahead of each spectrum installment. However, as per the new terms, Vodafone Idea will not need to provide such guarantees for the 2012, 2014, 2016, and 2021 auctions. The company is in talks with the Department of Telecommunications regarding a one-time shortfall related to the 2015 auction.

This move is seen as part of the government's ongoing support for the telecom industry, aiming to ensure the banking sector's resources are used to enhance 4G and 5G networks across India.

(With inputs from agencies.)