DoT for issue of demand note to telco on advance payment for spectrum purchased in auction

The Department of Telecommunications (DoT) said that the demand notes will be issued to Telecon on the advance payment for spectrum in the auction next week.

The demand note follows the auction winning bids of more than Rs-77,800 crore for the 855.6 MHz spectrum. Billionaire Mukesh Ambani’s Reliance Jio spent the most in the auction, taking 488.35 MHz of spectrum in bands like 800 MHz, 1800 MHz and 2300 MHz for Rs 57,122.65 crore.

Bharti Airtel bid about cos 18,699 crore, out of a total of 855.60 MHz of radiofrequency received by all telcos, 355.45 MHz (MHz) was acquired, while Vodafone Idea bought 80 MHz of spectrum worth Rs 1,803.40 crore.

DoT sources told PTI that demand notes will be sent to three companies this week, and advance payment is required for the massive spectrum that is ready to be allocated.

The spectrum will be offered for a validity period of 20 years. According to the terms of the auction, successful bidders can pay the entire bid amount in one go, or use an option to pay a certain amount (25% to win at 700 MHz in the spectrum, 800 50% won for spectrum in the MHz, 900 MHz band or 1800. MHz, 2100 MHz, 2300 MHz, 2500 MHz band) with a maximum balance of 16 in equal annual installments, after two years of deferment.

A DoT official said the demand is around 20,000 crore in total, but did not provide an operator-wise break-up.

Around 2308.80 MHz spectrum, which carries telecom signals in seven bands of around ₹ 4 lakh crore at an initial price, was up for bid in the recently held auction. However, the spectrum eventually acquired by telecom fell far short of this overall kitty and was bid on the reserve price, DoT said, and analysts concluded, that the auction results and response exceeded initial expectations.

Reliance Jio Infocomm has acquired the right to use spectrum in all 22 circles or regions across India at auction. Jio has received spectrum in bands such as 800 MHz, 1800 MHz and 2300 MHz, and its spectrum footprint ranges from 55% to 1,717 MHz.

According to DoT data, Vodafone Idea Limited (VIL) has purchased 5.8 MHz spectrum in the 900-band and 6 MHz in the 1800-band. VIL has acquired 1274 crores in 900 bands and 1800 bands. 719 crores in spectrum.

Jio, in the 800 MHz band, has acquired spectrum for 1 34,491 crore; At 1800 MHz, for 12,461 crore; And 2300 MHz, 23 for 10,170 crore. Bharti Airtel has paid maximum for the 900 MHz band (8 6,448 crore), 1800 MHz () 5,816 crore), 800 MHz (8 3,008 crore), 2300 MHz (0 3,070 crore), 2100 MHz (₹ 355 crore) . Last week.

Airwaves come in different bands that support different propagation characteristics for the transmission of voice and data. For example, lower bands such as 800 MHz and 900 MHz support a good indoor coverage, while higher bands like 2300 MHz have good capacitance.

Airwaves are also sold in measured quantities as megahertz. Auctions allow companies to use government-owned airwaves to carry signals for data and voice for a particular period of time.

Spectrum was bid for in the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands, although two bands – Airways 700 MHz and 2500 MHz – band remained unsold in the auction.