5G auction: DoT issues spectrum payment demand notices to four bidders

The Department of Telecommunications (DoT) has issued demand notices to all the four companies, which have bought spectrum in the recently concluded auction, to make payments by August 16.

The telcos have been given the option to pay in 20 equal annual instalments. The telecom firms can also choose to pay the entire amount or pay part upfront payment (which can be a multiple of complete years with a minimum of two years) also.

In case the firms opt for making payments in 20 equal instalments,

Jio’s first tranche comes out to be Rs 7,864 crore while that of is Rs 3,848 crore. ‘s first tranche is Rs 1,679 crore whereas new entrant Adani Data Networks has to pay Rs 18.94 crore, the notices put up on the DoT website on Saturday showed. The Adani group company though is expected to pay its entire bid amount of Rs 212 crore.

Market leader Jio was the largest bidder in the 5G airwave auctions which ended on Monday, spending Rs 88,078 crore, while and Vodafone Idea bought airwaves worth Rs 43,084 crore and Rs 18,799 crore, respectively.

While issuing the demand notices, the DoT has informed the companies that in frequency range 25.5-27 GHz, a keep out zone of 2.7 km radius may need to be provided from a location to be specified in future in Gujarat and Andaman & Nicobar islands.

Accordingly, the companies may be required to relocate their transmitters as necessary, for which a pro-rata reduction in the total payment liability will be allowed, with effect from date of such exclusion or date of relocation of transmitter, whichever is later.

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Apart from raising the demand for making payments, the DoT has informed about spectrum availability in all the blocks in various bands won by the companies. In some blocks, the spectrum availability is not complete, which has been communicated to the firms. The department has recently completed the spectrum harmonisation, or reorganisation, exercise, telecom minister Ashwini Vaishnaw has said.

The government netted Rs 150,173 crore from the sale of 51,236 MHz in the seven-day auction, which ended Monday. In all, it had put 72,098 MHz airwaves on sale.

The government expects 5G services to be rolled out gradually from September-October with pan India coverage to be completed in two-three years, backed by investments of around Rs 2-3 lakh crore. Initially, 5G networks are likely to be launched in metros and category A circles that have high paying power, followed by smaller cities and towns.


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