Good times ahead: DoT eases spectrum caps, increases payment tenure

The entry of Reliance Jio in September 2016 had compounded the problems of the industry

The Department of Telecommunications (DoT) on Monday amended the terms of licences for mobile operators, increasing the number of spectrum instalments to 16 and relaxing the holding limits for airwaves.

The change in the licence terms, effective immediately, came after the Cabinet approved relief measures for the debt-laden telecom sector. The restructuring of deferred payment liabilities to 16 years from the earlier 10 will increase the cash flow in the immediate time frame. 

The relaxation of spectrum caps will consolidate the sector and provide an opportunity to smaller players to exit by selling assets. Analysts say the longer duration of