DoT send notices to Jio, Airtel and Vodafone Idea demands Rs 21,919 crore for spectrum bought

The DoT in separate notices to three telecom giants sought Rs 15,019.84 crore from Jio, Rs 6323.98 crore from Airtel, and Rs 574.65 from Vodafone Idea, as upfront payment if the telcos choose the spread their dues over 16 years.

As a standard procedure for the spectrum auction, the buyers had an option to pay upfront 50 percent of the final bid for 1,800, 2,100, 2,300, and 2,500MHz bands, and the remaining amount can be paid in equated 16 installments over a period of two years at the interest rate of 7.3 percent, following the two years moratorium. For 700, 800, and 900MHz bands, the upfront amount was 25 percent of the successful bid.

The buyers were also required to pay three percent of the Adjusted Gross Revenue (AGR) excluding wireline services as spectrum usage charges for the spectrum won through this auction.

The government managed to sell 855.60 megahertz (MHz) of the spectrum which is 37 percent of the offered 2308.80 MHz by volume, and 19 percent by value as compared to the last auction held in 2016 where, of the 2,354.75MHz auctioned, about 41 percent or 964.80MHz was acquired in terms of quantity and 12 percent or Rs 65,789 crore by value.

The DoT has sent the total amount of the spectrum bought and the outstanding upfront amount if they choose to exercise the defer payment option.