Draft Telecom Bill: Centre to take spectrum back if telcos fail to pay dues

The draft telecom bill also recognised that the spectrum is a valuable resource and provided for the assignment of the spectrum for the public good

The draft telecom bill has cleared the air around doing away with the inconsistencies in the ownership of spectrum for corporates under stress, according to industry experts. If the ailing telecom company fails to pay the dues to the government, it can take back the spectrum, a report by Economic Times (ET) added. 

According to the bill, the value of the spectrum cannot be sold back to creditors under the Insolvency and Bankruptcy Code (IBC). 

Experts said that the bill has also clarified the regulations of OTT platforms. "Telecom operators had been petitioning to seek a level playing field with companies offering competing OTT services such as voice and video calling, texting etc," Credit Suisse said as per ET.

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The bill also recognised that the spectrum is a valuable resource and provided for the assignment of the spectrum for the public good. 

"While it mentions that auction will be the key means of selling of spectrum, it also provides for assignment of spectrum for the public good," JM Financial added. 

The bill, introduced last Wednesday, aims to replace three existing laws - Indian Telegraph Act, 1885, Wireless Telegraphy Act, 1933, and Telegraph Wires (Unlawful Possession) Act, 1950. 

However, to ensure a smooth transition, the centre has allowed continuity of actions taken under the repealed laws. 

Experts further added that the draft telecom bill offered a robust regulatory framework within the federal structure to obtain right of way (RoW) approvals in a uniform, non-discriminatory manner.