Telcom companies allowed to mortgage spectrum
13 Jul 2012
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Telecom companies have been allowed by the empowered group of ministers, headed by the home minister, P Chidambaram, to mortgage spectrum as collateral in order to raise funds from banks.
The banks would get the rights to own or sell the spectrum in case of a default by the telecom company.
Sale of spectrum by the banks would be monitored by the DoT, the department of telecommunications.
The group however, failed yet again to take a decision on the crucial issue of fixing the reserve price for the upcoming spectrum auction.
The delay in decision would make it difficult for the government to meet the 31 August deadline set by the Supreme Court.
The EGoM is expected to conduct a meeting again early next week.
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