The Department of Telecommunications (DoT) is reportedly considering a plan to allow the surrender of spectrum acquired in auctions before 2022, a move that would allow Vodafone Idea Limited (Vi) to save an estimated Rs 400 billion by returning excess airwaves, bolstering its viability. Vi has 8,030 MHz of spectrum across several bands and says it has the most airwaves per million subscribers in the industry.
The latest proposal is part of measures the government has taken or is considering to underline its intent of ensuring a competitive sector with Reliance Jio, Bharti Airtel, Vi and Bharat Sanchar Nigam Limited (BSNL).
While the policy of spectrum surrender will be applicable to all telcos, it will benefit loss-making Vi the most as larger rivals Bharti Airtel and Reliance Jio have prepaid most of their past dues toward airwave purchases. The company could use the opportunity to surrender excess airwaves and reduce annual payments.
In addition, DoT is not considering refunds in the event of spectrum surrender.
