Insolvent companies could lose spectrum under the new Telecom Bill

Spectrum assigned to the insolvent company will revert to government control in case it fails to comply with these conditions

Telecom sector
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'The draft bill implies that ownership of spectrum remains with the government, and value of spectrum cannot be sold by creditors under the Insolvency and Bankruptcy Code'

Aneesh Phadnis Mumbai
Insolvent telecom companies that do not meet government conditions could lose spectrum under the proposed telecom Bill but some experts suggested that its sections need to align with Insolvency and Bankruptcy Code (IBC).

The draft Bill said a company which is subject of insolvency proceedings can still operate if it continues to provide telecom services, doesn’t default in payment of any dues, and meets any other stipulated conditions.

Spectrum assigned to the insolvent company will revert to government control in case it fails to comply with these conditions.

According to the draft Bill, the central government may take such further

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First Published: Sep 22 2022 | 9:41 PM IST

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