InvestorQ : What happens to the likes of GAIL and OIL now in the telecom tangle and what is the best the government can do for Bharti and Vodafone?
Chandralekha Desai made post

What happens to the likes of GAIL and OIL now in the telecom tangle and what is the best the government can do for Bharti and Vodafone?

Answer
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Mitali Bhutta answered.
3 months ago


Earlier, the DOT had made fairly unreasonable demands to companies like REC, Oil India and GAIL for spectrum allocated to them. However, these are not telecom companies and the telecom spectrum allocation was only incidental. Government has now confirmed that 96% of such dues will not be charged. That should set to rest, especially after the court order.

How should the DOT and government react? Ideally, their first intent was to send a clear message to telcos that AGR was a legitimate due. That message has been clearly sent out by the government and the DOT. It is time for the government now to be a lot more flexible in this regard. DOT should give telcos some waiver of payables and also more time.

The industry has consolidated to just 3 companies and the government surely does not want a telecom duopoly. It is best to be flexible. Telecom sector is on the throes of a massive digital boom and the government would be the big beneficiary of exponential growth in revenues. This is the time to be lenient having already sent the message to telcos.