Telcos can now pay spectrum fees in more installments

In a move to provide relief to the telecom players reeling under deep financial stress, the Department of Telecom on Monday amended licence norms of service providers to increase number of installments for spectrum payments and radiowaves frequency holding limit.

“The licensee may opt one time for higher number of instalments including in the current financial year 201718 (maximum 16 installments) for deferred payment liabilities as per Notice Inviting Application (NIA) for auctions conducted for award of spectrum in the years 2012, 2013, 2014, 2015 and 2016," a DoT note on licence amendment said.

Before this amendment, a portion of spectrum auction amount used to be taken as upfront payment by Department of Telecom(DoT) and the balance, after a two-year moratorium, was paid out every year -- 10 installments in all.

The amendment is part of relief measures approved by the Cabinet early this month for the sector reeling under debt of Rs 7.87 lakh crore and suffering from reduction in margins due to cutthroat competition induced with entry of Reliance Jio.

There will be no change in value and interest rate that telecom companies have to pay for the spectrum. The total amount that telecom operators will pay for the spectrum will be higher by Rs 74,446.01 crore till 2034-35 if they opt for more number of installments. It will be optional for telecom operators to choose between current number of installments and increased number of installments.