How Idea-Vodafone to be the biggest gainers from easier spectrum caps

The overall spectrum holding limit for operators has been increased to 35 per cent from 25 per cent

The relief measures announced by the government for the debt-ridden telecom sector would benefit the Idea-Vodafone combine the most among large players, as the merged entity could retain spectrum in key markets and significantly boost cashflows, analysts said.

According to a Deutsche Bank report, the Idea-Vodafone combine will have to pay a 30 per cent lower annual installment on spectrum due to the longer duration of the payment tenure. The merged entity will also have the highest leverage among large players.

“The Idea-Vodafone merged company’s annual installment stands at around Rs 160 billion compared to the current annualised EBITDA of