Vodafone Seeks Moratorium On Spectrum Payments

Amid the telecom sector reeling under financial stress, Vodafone Group chairman Gerard Kleisterlee and CEO Nick Read on Monday met Telecom Secretary Anshu Prakash, seeking some relief measures, including a two-year moratorium on deferred spectrum payments.

Talking to reporters after the meeting with the Secretary, Mr. Kleisterlee said discussion with the government was “good as always.” Replying to a query on speculation that the company may not remain a long-term investor in India given the sectoral stress, Mr. Read said, “We are absolutely focussed on the successful integration of our business between Vodafone and Idea [in India].”

The two Vodafone officials, who had also met Commerce and Industry Minister Piyush Goyal earlier on Monday, did not divulge more details about the meeting. However, according to sources, Vodafone reiterated its request for a two-year moratorium on payment for the spectrum bought in the past auctions.

With intense competition following the entry of Reliance Jio, leading to rock-bottom tariffs, Vodafone Idea had earlier, too, sought a two-year moratorium on its annual spectrum payment, citing debt and stress on the balance sheet.

Besides, the industry had also been seeking measures from the government such as cut in levies such as licence fee and spectrum charges, and release of GST input tax credit locked up with the government.―The Hindu