Jio refuses 4 year spectrum, AGR moratorium

Reliance Jio Infocomm (Jio) has refused the government's moratorium on spectrum and adjusted gross revenue (AGR) payments , becoming the only telco to do so. Jio's refusal comes at a time when both rivals Bharti Airtel and Vodafone Idea (Vi ) have accepted both forms of moratorium.

Jio's response comes on on the back of a telecom relief package which included the four-year moratorium on AGR and spectrum payments, sharply reduced BGs and the option to convert statutory dues to government equity.

Recently, the largest telco paid Rs 10,792 crore to the Department of Telecommunications (DoT), clearing all dues towards spectrum bought in the 2016 auctions.


However, it has not yet cleared all dues of spectrum bought in 2014 and 2015 auctions, which is about Rs 15,000-RS 16,000 crore, including interests.

According to analysts a moratorium for the cash rich company may not make sense since unlike its rivals it is not stretched to expand its 4G capacity or invest in the next generation technology.

Ironically, Jio's refusal comes the same day as Vi accepting the 4 year AGR moratorium. Brokerage firm Nomura, in a report had estimated the Mukesh Ambani led telco to get a Rs 4,300 crore annual cash flow relief by opting for the spectrum moratorium.