Struggling Vodafone Gets Respite With Today's Big Telecom Reforms

The Union Cabinet today approved a four-year moratorium on airwaves payments due to the government, giving debt-ridden Vodafone Idea more time to pay dues.

The Union Cabinet today approved a relief package for cash-strapped telecoms sector including a four-year moratorium on airwaves payments due to the government, the telecom minister said.

The deferred payments cycle will begin from October 1, Telecom Minister Ashwini Vaishnaw said, giving debt-ridden Vodafone Idea - which previously said it runs the risk of a shutdown without government help - more time to pay dues.

Shares in Vodafone Idea rose 2.9 per cent on the news, while Bharti Airtel closed 4.5 per cent up in a broader Mumbai market that closed 0.8 per cent higher.

Some of the other measures announced in the telecoms package include raising the tenure of airwaves held by firms to 30 years from the current 20 years, waiving the usage charge for airwaves acquired via future auctions, and completely free sharing of spectrum between carriers, Mr Vaishnaw said.