Telecom Package - Four-Year Moratorium On AGR Rules Provides Big Relief: Axis Securities
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Axis Securities Report
The Union Cabinet approved a four-year moratorium period on dues and rationalised the definition of adjusted gross revenue.
This reform will change the framework of the entire telecom industry while broadening it.
Licence fees and spectrum usage charges, prospectively, delay in payment will attract interest at marginal cost of funds based lending rate plus 2%, and would not attract any penalty.
Spectrum useful life in the upcoming auction is extended to 30 years from the current 20 years. This will have 10 years lock-in with a provision to surrender after 10 years with surrender charges.
Spectrum auction calendar is to be created to ensure availability of the spectrum.
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