Airtel has submitted a strong request to the government, these benefits will be available as soon as they are fulfilled

Technical News Office,Bharti Airtel has asked the Department of Telecommunications (DoT) to provide a level playing field for all telecom companies. According to an article in Economic Times, this letter was written at a time when the government is considering the Vodafone-Idea project, i.e. Vi’s request to relax the bank guarantee (BG) on payment of spectrum. let’s learn

What did Airtel say in its letter
In its letter to the DoT, Airtel said it supports the BG exemption proposal, but it should have a “non-discriminatory” framework for all telecom companies, i.e. treat everyone on an equal footing. This means that different benefits should not be granted taking into account the financial situation of a company. According to the report, officials linked to the case gave this information.

Requirement for uniform rules
Airtel has sought uniform rules, emphasizing its acquisition of broad spectrum and the bank guarantee responsibilities associated with it. On the other hand, Vodafone-Idea, struggling with financial problems these days, has sought government help to reduce its debt and take more loans from banks. Earlier this year, the organization representing all private telecommunications companies, Cellular Operators Association. of India (COAI) had also written to the DoT requesting it to remove the requirement of BG in auctions before 2022. The DoT is currently considering a proposal for exemption from BG, including a draft cabinet note. Under this proposal, telecom companies can opt for the BG rebate by making an advance payment of three months of spectrum payments.

Airtel, Reliance Jio, Vodafone-Idea: who owes how much?
As per the previous auction, Reliance Jio needs a BG of around Rs 4,000 crore per annum and Airtel requires around Rs 3,000 crore. These companies pay for spectrum usage fees by making advance payments to save interest rates. After raising Rs 24,000 crore through equity, Vodafone-Idea now wants to raise Rs 25,000 crore as loan and Rs 10,000 crore as BG or bonds to acquire Airtel and Reliance Jio.