TTML mulls raising borrowing limit to Rs 13,000 cr

Tata Teleservices (Maharashtra) is planning to raise its borrowing limit to Rs 13,000 crore from Rs 8,500 crore at present to pay for existing telecom spectrum it holds, if required.

"Given the backdrop of the regulatory changes which are currently being discussed, there is a possibility of the operators being asked to pay extra money for their existing spectrum in CDMA and/or GSM streams," TTML said in a filing to BSE today.

The Department of Telecommunications (DoT) has proposed to levy a one-time fee on incumbent telecom operators for the remaining period of their licence to create a level-playing field between existing and new telecom operators.

TTML added that "without prejudice to legal rights of the company" the company may be required to make payment for the spectrum it holds which may have to be funded through additional borrowings.

"Keeping in view the likely debt requirements of the company in the next 2-3 years, the existing borrowing power powers of the Board of Rs 8,500 crore may not be adequate and therefore may need to be increased to Rs 13,000 crore," TTML said.

The proposal for rasing borrowing limit will be discussed at company's annual general meeting to be held on August 29.

The DoT has proposed four options to charge spectrum held by existing operators which include charging all spectrum held by them, or charging beyond 4.4 Megahertz spectrum that was allocated to players with their licences, or charging beyond the contracted spectrum of 6.2 Mhz. The other option suggests no one-time charge for current spectrum.

In case of CDMA, the DoT is charging all spectrum or beyond 2.5 Mhz or beyond contracted spectrum of 5 Mhz.

TTML provides services using both GSM and CDMA technology.