DOT set to issue demand notes for upfront pay
NEW DELHI: The Department of Telecommunications (DOT) will issue demand notes to telcos next week on an upfront payment for spectrum acquired in the just-concluded auctions, officials said.
The demand note follows auctions raking in winning bids of over ₹77,800 crore, for 855.6 MHZ of spectrum. Reliance Jio spent the most in the auction, picking up 488.35 MHZ spectrum in bands such as 800 MHZ, 1800 MHZ and 2300 MHZ for ₹57,122.65 crore.
Bharti Airtel bid about ₹18,699 crore to acquire 355.45 megahertz (MHZ) out of the total 855.60 MHZ of radiofrequency acquired by all telcos, while Vodafone Idea, bought 11.80 MHZ of spectrum worth ₹1,993.40 crore.
DOT officials told PTI that the demand notes will be sent out to the three companies this week, and entails largely the upfront payment for spectrum that is ready to be allocated.
Spectrum will be offered for assignment for a validity period of 20 years. As per the auction terms, successful bidders can pay entire bid amount in one go, or exercise an option to pay a certain amount (25% for spectrum won in 700 MHZ, 800 MHZ, 900 MHZ bands or 50% for spectrum won in 1800 MHZ, 2100 MHZ, 2300 MHZ, 2500 MHZ bands) upfront with remaining amount in a maximum up to 16 equated annual instalments, after a moratorium of two years.
A DOT official said the demand notes total about ₹20,000 crore, but did not provide operator-wise break-up.
About 2308.80 MHZ of spectrum, that carry telecom signals in seven bands worth nearly ₹4 lakh crore at start price, was up for bidding in the auction held recently. Although the spectrum acquired by telcos fell short of this overall kitty and bids hovered at reserve price, DOT said, and analysts concurred, that auction outcome had surpassed initial expectations.
Reliance Jio has acquired the right to use spectrum in all 22 circles or zones across India, in the auctions. Jio has bagged spectrum in bands such as 800 MHZ, 1800 MHZ and 2300 MHZ, and its spectrum footprint is up by 55% to 1,717 MHZ.
As per DOT, Vodafone Idea Ltd has bought 5.8 MHZ spectrum in 900-band and 6 MHZ in 1800-band. Vi acquired spectrum in 900 band for ₹1,274 crore and in 1800 band for ₹719 crore.