Vodafone Idea (Vi) has opted for four-year moratorium on payment of spectrum dues. This will allow the cash-strapped telecom operator to make investments in new services and technology.
Earlier the government had given the telcos time till October 29, 2021, to communicate whether they wish to avail a moratorium on payment of spectrum dues and adjusted gross revenue (AGR).
Further, the Department of Telecommunications (DoT) has given them 90 days to consider the option of converting the interest that will accrue during the moratorium period into equity.
While Vodafone Idea has decided to avail the moratorium on payment of spectrum dues, it is yet to take a similar call on payment of adjusted gross revenue (AGR) dues.
The spectrum payment moratorium period will provide ample time for the company to get back on growth trajectory. Accepting four-year moratorium on spectrum payment shall potentially ease Vi’s immediate cash flow burden.
