Industry body COAI on Tuesday said the Cabinet nod for bank guarantee waiver for past spectrum purchases is a "landmark decision" that would help reduce financial burden on telecom operators in the country.
The association - whose members include Vodafone Idea, Bharti Airtel and Reliance Jio - further said the move will enhance cash flow, free up capital and enable capital investments in network expansion and technology upgrades. This, COAI said, will ensure a stronger and robust rollout of telecom networks in the future.
"COAI welcomes the Union Cabinet's move and thanks the Government on approving the waiving of bank guarantee for telecom operators on spectrum purchased before 2022. This landmark decision will significantly help reduce the financial burden on the telecom operators in the country," SP Kochhar, Director General of COAI said in a statement.
The Union Cabinet has waived the requirement to submit bank guarantees for spectrum purchased through auctions held before 2022