Will Reliance Jio Decide to Defer its Dues to DoT?

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Will Reliance Jio Decide to Defer its Dues to DoT?
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Despite having a relief package put into place by the Department of Telecomm­un­ications (DoT) to alleviate the financial stress on Indian telecom players, leading telecom operator Reliance (NS:RELI) Jio has reportedly paid off its entire dues pertaining to its spectrum purchase of 269.2 MHz in the 2016 auction.

Sources in DoT have confirmed that Jio has paid Rs 10,792 crore earlier in October, clearing its entire spectrum dues of 2016.

The telco is yet to pay all its complete dues for the airwaves purchased in 2014 and 2015, which amounts to Rs 15,000-16,000 crore, with interest appended. The telco has been paying instalments for the same annually.

The telecom major is yet to send its decision on deferring its spectrum auction instalments and AGR dues for four years, to the DoT by today (Oct 29). Bharti Airtel (NS:BRTI) had conveyed opting for the four-year moratorium on the spectrum and AGR dues to the DoT on October 25, while Vodafone Idea (NS:VODA) confirmed deferring its spectrum dues for four years on October 20 , and is yet to send in a decision about deferring AGR dues by today, which is the deadline set by DoT.

Reliance Jio has the option of deferring its dues for spectrum purchased in 2014 and 2015, by intimating the DoT by today, and can use it to invest in the upcoming 5G auctions and network improvements. 

Japanese brokerage Nomura states that Jio could get an estimated relief amount of Rs 4,300, by opting to go for the 4-year spectrum moratorium.

 

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