DoT demands Rs 21,919 crore from three big telcos for spectrum bought

Following the conclusion of the latest spectrum auction held on March 1-2, the Department of Telecom (DoT) has sent notices to the telecom companies demanding Rs 21,919 crore as upfront payment for the 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, the Economic Times reported.

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.