Will Reliance Jio Decide to Defer its Dues to DoT?

By Malvika Gurung

Investing.com — Regardless of having a reduction package deal put into place by the Division of Telecomm­un­ications (DoT) to alleviate the monetary stress on Indian telecom gamers, main telecom operator Reliance (NS:RELI) Jio has reportedly paid off its total dues pertaining to its spectrum buy of 269.2 MHz within the 2016 public sale.

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

The telco is but to pay all its full dues for the airwaves bought in 2014 and 2015, which quantities to Rs 15,000-16,000 crore, with curiosity appended. The telco has been paying instalments for a similar yearly.

The telecom main is but to ship its resolution on deferring its spectrum public sale instalments and AGR dues for 4 years, to the DoT by as we speak (Oct 29). Bharti Airtel (NS:BRTI) had conveyed choosing the four-year moratorium on the spectrum and AGR dues to the DoT on October 25, whereas Vodafone Concept (NS:VODA) confirmed deferring its spectrum dues for 4 years on

October 20

, and is but to ship in a choice about deferring AGR dues by as we speak, which is the deadline set by DoT.

Reliance Jio has the choice of deferring its dues for spectrum bought in 2014 and 2015, by intimating the DoT by as we speak, and may use it to spend money on the upcoming 5G auctions and community enhancements. 

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