According to a Mumbai-based ratings and research agency – India Ratings (Ind-Ra), the Draft Indian Telecommunication Bill 2022 is expected to provide clarity on some of the critical aspects of the telecom sector including regulation for over-the-top (OTT) providers, but would not hasten insolvency related proceedings. Meanwhile, Ind-Ra also asserts that the draft Indian Telecommunication Bill 2022 intends to provide one stop clarity on several key aspects that have affected the telecom industry over the past two years.
However, the rating agency believes that the provision in the bill that reserves the right of the government to take back the spectrum if the ailing telecom operator fails to pay government dues, further amplifies the concerns on the operational viability of such telcos. To this end, Ind-Ra notes that the impact of the bill on the resolution process needs to be seen, given that the ailing telcos may not have the financial flexibility to clear government dues and/or have the operational cash flows to service the ongoing regulatory charges.
