'Spectrum sale under IBC after clearing government dues only’
NCLAT rejected this. “Spectrum cannot be treated as a security interest by the lenders,” it said in the order. The tribunal stressed that as licensees, telcos only have the right to use the spectrum, while ownership vests with the nation and the government is its trustee.
Great. So Spectrum is more like a liability than an asset, if not used properly.
So Aircel and RCom's liberalised spectrum is coming back to Govt only. There is a reason, why Jio selected to buy new 10MHz of Band5 in most circles than getting it from RCom with discount.
Since RCom's Band1 spectrum of Rajasthan circle is coming back, Govt must give that spectrum instead of Band5 to BSNL.
afterall both guj, and kerala are vis top circle and priority too.
Yeah. No Doubt.
there is no deny that if vi is getting cash by selling spectrum is good news for airtel, but it will again give wrong impression that new cartel is formed.
The problem now is, VoId is left out of the new Cartel of Jio+Airtel.
secondly vi wont able to attract investor , as they may think that company is selling assets,spectrum,
VoId already can't attract any investor. The only guys who are the sole reasons for such situation of VoId, including the lack of investors is, their PROMOTER GROUP only.
Promoters openly are saying, "We will NOT drop even single paisa in our company VoId", but they want others to invest big money in them. Come on, even if the promoters have no confidence on their own co, then who-ever will have? Its not like they have NO money,
they just don't want to do big investment and definitely not having the patience to wait for the good returns. Even they have taken good money from their respective Co (before merger), during the golden days.
If the promoters are ready to invest money in VoId and get their hands dirty by doing hard work for improving its condition, they can give good fight and ultimately win. Even many investors will gain confidence and help them grow fast. Because they already have more than adequate spectrum. But self-confidence and willing to do hard work is much much more costlier than spectrum.
By 2023, they need to pay 14000+cr rupees to Govt, (AGR extra, I think). But now they can't pay license fees for few circles within due date and going to pay with penalty.
Whatever efforts they are taking (like growing 4G coverage) is more than enough if their competitors are Aircel or Videocon. But it is Jio in their opposite side. Airtel has done the right thing on right time and hence they are giving good fight to Jio (even though looks like new cartel now).