NEW DELHI - India will defer spectrum payments due from telecommunications companies for two years to help an industry ravaged by a years-long price war, mounting debt and a court decision last month demanding US$13 billion in overdue fees.
The proposal was recommended by a panel of senior Indian bureaucrats under Prime Minister Narendra Modi to help wireless carriers the government estimates owe more than US$20 billion in license fees and spectrum charges. The relief will be worth as much as 450 billion rupees and the panel will continue to discuss other measures to help the industry, an official told reporters.
The relief on fees comes after Vodafone Idea posted the worst quarterly loss in India's corporate history earlier this month and Bharti Airtel logged a record deficit for the September quarter. Jio, which overtook both companies and became the top carrier by subscribers this year, had argued against government action to help Vodafone Group Plc's Indian venture and Bharti, which is backed by billionaire Sunil Mittal and Singtel.