With an aim to reduce financial stress from the telecom sector, the inter ministerial group (IMG) has suggested the next round of spectrum auction to be held in the next financial year.
" The IMG has suggested that there should not be any kind of spectrum auction this year, and it will take place in next financial year, sources close to the development said." Adding that this time the Government is also planning to put the 20 Mhz of 2300 Mhz spectrum.
Sources also said that "IMG has also recommended that the payments for spectrum be taken in 16 installments (16 years), currently, it is 10 years practice."
IMG was constituted to suggest reforms in the telecom sector.
The sector is in under financial stress due to increasing pressure after the entry Mukesh Ambani-led Reliance Jio with free services and cheap data offers to lead to massive fall in revenues and a debt of about Rs. 4.6 lakh crore.
Meanwhile, Telecom Secretary Aruna Sundararajan has recently said that the inter ministerial group report on improving the financial health of the sector will place before Telecom Commission on September 8.
She said, " The report would be submitted to the telecom ministry by Wednesday." Adding that, "we will take it up on September 8 for discussion."
However, she also said that the findings of the report are expected to give some relief to a sector.
To recall, Vodafone Group Chief Executive Officer, Vittorio Colao has written to telecom minister Manoj Sinha seeking a cut in interest rates for deferred spectrum payments and concerns over a reduction in Mobile Termination charges (MTC).