The Telecom Department is poised to introduce the initial set of regulations for the newly enacted telecom law within the coming months, according to Neeraj Mittal, Telecom Secretary. Mittal also indicated that the Government of India will explore the appropriate timing to reduce its stake in financially strained Vodafone Idea. However, he refrained from providing a specific timeline.
Enacted in December last year, the new telecom law replaced three outdated legislations. Speaking on the sidelines of the Mobile World Congress 2024, Mittal mentioned that the department aims to conduct the next round of spectrum auctions in the early June quarter.
Regarding Vodafone Idea, Mittal emphasized the need to assess operational aspects and opportunities before any stake sale decision. The Indian government, holding a 31 percent stake, is the largest shareholder in the struggling telecom operator.
The board of Vodafone Idea recently approved plans to raise Rs 45,000 crore in equity and debt, including capital infusion from its promoters.
Furthermore, the telecom department is exploring options to facilitate the surrender of spectrum, particularly 3G, which telecom operators are phasing out.
Mittal highlighted the need for additional spectrum by 2030 and mentioned that surrendering 3G spectrum could potentially reduce telco liabilities and make spectrum available for future 6G services. Indian telcos acquired 3G spectrum at high prices and interest rates, as noted by experts.
