Government To Recommend Package To Relieve Telecom Sector’s Financial Stress

The Committee of Secretaries under the Cabinet Secretary will examine all aspects of the financial stress faced by India’s telecom service providers and recommend a package for the sector, according to a government official.

Spectrum usage charges stand at 3-4 percent of adjusted gross revenue while USOF stands for 5 percent, according to data compiled by BloombergQuint.

Bharti Airtel pays Rs 5,800-6,500 crore towards spectrum auction dues annually while Vodafone Idea pays around Rs 11,600-12,000 crore, according to BloombergQuint’s calculations. On the other hand, input tax credit standing on Airtel’s book is close to Rs 10,000-11,000 crore while that for Vodafone Idea is around Rs 6,700 crore, the data showed.

Bharti Airtel deferred the announcement of its quarterly results today to Nov. 14, citing uncertainty regarding adjusted gross revenue.