The recent decision by the government to waive bank guarantees for spectrum purchased before 2022 has been welcomed by the Cellular Operators Association of India (COAI).

This move is expected to alleviate the financial burden on telecom operators, including Vodafone Idea, which currently owes over Rs 24,700 crore in bank guarantees.

Indian telecom operators collectively owe more than Rs 30,000 crore in bank guarantees to the government.

COAI's director general, SP Kochhar, expressed optimism that this decision will improve cash flow, release capital, and support necessary investments in network expansion and technological upgrades.

The waiver is anticipated to provide a much-needed boost to the financial health of major players in the sector, such as Bharti Airtel and Reliance Jio.