A big news has come related to vodafone Idea. However, this news will provide relief to the entire telecom industry including vodafone idea (Vi). Actually, the Department of Telecommunications (DoT) has abolished the condition of bank guarantee (BG) of spectrum auction for vodafone idea and other operators. Let us tell you, this rule applies to auctions before the 2021 telecom reform package, which includes auctions of 2012, 2014, 2015, 2016 and 2021.
vodafone idea said on Saturday, 28 december that it has received an official letter from the Department of Telecommunications regarding this decision. The company praised the government's move and called it a big support for the industry. The company says that this move will promote investment in 4G and 5g networks in India. Let us tell you, recently vodafone idea (VIL) has successfully repaid a loan of about Rs 11,650 crore taken against its shares. vodafone idea said in the information given to the stock markets, "The requirement of bank guarantee was abolished for the auctions after the 2021 reform package. Now the government has removed this condition for the earlier auctions as well."
Relief from bank guarantee
Under the earlier rules, vodafone idea had to deposit a bank guarantee of about Rs 24,800 crore 13 months in advance for each installment of spectrum. Now, vodafone idea will not have to give bank guarantee for the auctions of 2012, 2014, 2016 and 2021. However, the company may need a one-time partial payment for the 2015 auction. vodafone idea said that it is discussing the matter with DoT so that the final amount of this payment can be decided.
What will be the benefit to the company?
The company said that by removing the condition of bank guarantee, telecom operators will be able to use the funding of banks to expand 4G and 5g networks. This step shows that the government is committed to strengthening the telecom sector.
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