Telecom Department Eyes New Rules, Government to Trim Vodafone Idea Stake Amid Spectrum Shifts

1 Mar 2024 , 10:16 AM

The Telecom Department plans to introduce the first set of rules and regulations for the new telecom law in the coming months, as stated by Neeraj Mittal, Telecom Secretary.

Mittal mentioned that the Government of India will consider reducing its stake in the financially troubled Vodafone Idea when the timing is appropriate. However, no specific timeline was provided by the secretary. The new telecom law, enacted in December last year, replaced three outdated laws.

Mittal revealed during the Mobile Worlds Congress 2024 that the department aims to conduct the next round of spectrum auctions early in the June quarter. Mittal emphasized the need to assess various factors, including operational conditions, before making decisions.

The Indian government, holding a 31% stake, intends to sell its shares in Vodafone Idea at an opportune moment, but not immediately. Vodafone Idea’s board approved plans to raise ₹45,000 Crore in equity and debt, including capital from its promoters, on February 27.

The telecom department is exploring options to facilitate the surrender of spectrum, including 3G, as telecom operators phase it out.

Mittal highlighted the continuous need for spectrum and the potential for surrendering or refarming spectrum if opportunities arise. Experts suggest surrendering the 3G spectrum could reduce telco liabilities and make spectrum available for 6G services, considering the high prices paid for the 3G spectrum by Indian telcos.

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