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This Article is From Sep 16, 2021

Telecom Package - Four-Year Moratorium On AGR Rules Provides Big Relief: Axis Securities

Telecom Package - Four-Year Moratorium On AGR Rules Provides Big Relief: Axis Securities
A pedestrian looks up while walking past a Bharti Airtel Ltd. store in Mumbai. (Photographer Dhiraj Singh/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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