Huge relief for the worn-out telecom sector. The stressed telecoms can expect to see a light at the end of a long dark tunnel as news about a long-term relief package floats in the industry.

Widespread relief was experienced by the Telecom sector as the Union Cabinet approves the long-term relief package. The much stressed-out ailing telecom companies such as Bharti Airtel and Vodafone Idea.

Out of all the telecom giants operating in India, Vodafone Idea is facing the maximum crisis currently. Vi needs financial assistance urgently to keep its operations running at any cost. According to our sources, Vi can expect to receive around $1 billion as annual relief which is a substantial amount to help cross over to safer grounds. The survival chances of Vodafone Idea look much better if this works out.

BNP Paribas senior telecom analyst Kunal Vora said, “A 2 percent rate cut on VIL’s deferred spectrum liability would lower its annual interest burden by Rs 2,100 crore and if the government foregoes the interest component on the telco’s AGR dues, it can result in an additional Rs 4,000-Rs 5,000 crores annual relief.

While Bharti Airtel does not face as much risk as Vodafone, availing of the relief package will certainly enhance its survival chances against Reliance Jio.

Details regarding the crucial relief package will soon be released as per the statement of a government official. A 4-year moratorium on AGR-related dues can be expected in the package. Telecom firms will also be allowed to surrender the unused spectrum at hand. This is going to prove beneficial for the telecom industry as a whole.

with the announcement of the relief package, The Bombay Stock Exchange scenario looks positive as shares of Vodafone Idea and Bharti Airtel have already seen a surge. Promising times seem to be in place for telecom consumers.