Department of Telecom Said to Receive Rs. 17,876 Crore From Operators as Upfront Payment for 5G Spectrum

The Department of Telecom is said to have received a payment of around Rs. 7,864.78 crore from Reliance Jio.

By Press Trust of India | Updated: 18 August 2022 02:29 IST

Department of Telecom Said to Receive Rs. 17,876 Crore From Operators as Upfront Payment for 5G Spectrum

Photo Credit: Reuters

Earlier this month, the government sold 5G telecom spectrum worth Rs. 1.5 lakh crore

Highlights

Jio, Airtel, Vodafone Idea are said to have paid their 5G spectrum dues
5G is expected to roll out in India over the coming weeks
Jio cornered most of the 5G spectrum at the recently concluded auction

The Department of Telecom (DoT) has received upfront payment of around Rs 17,876 crore from Bharti Airtel, Reliance Jio, Adani Data Networks and Vodafone Idea for spectrum they won in a recent auction, according to sources. While all telecom operators have opted to make payments in 20 annual installments, Bharti Airtel has paid Rs 8,312.4 crore equivalent to four annual installments.

Reliance Jio has made payment of Rs. 7,864.78 crore, Vodafone Idea Rs. 1,679.98 crore and Adani Data Networks Rs. 18.94 crore.

"DoT has received a total payment of around Rs. 17,876 crore. Only Bharti Airtel has paid for four annual installments at one go," an official source said.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

The country's biggest-ever auction of telecom spectrum received a record Rs. 1.5 lakh crore worth of bids, with Mukesh Ambani's Jio cornering nearly half of all airwaves sold with a Rs. 87,946.93 crore bid.

Gautam Adani's group has placed bids worth Rs 211.86 crore for the 400 MHz in a band that is not used for offering public telephony services.

Telecom tycoon Sunil Bharti Mittal's Bharti Airtel made a successful bid of Rs. 43,039.63 crore, while Vodafone Idea Ltd bought spectrum for Rs. 18,786.25 crore.

5G Should Be Priced at Premium to 4G With More Data, Vodafone Idea MD Says

On Wednesday, telecom operator Airtel announced that it had paid Rs. 8,312.4 crore to the Department of Telecom towards dues for spectrum acquired in the recently concluded 5G auctions.

With the payment, Airtel has paid four years of 2022 spectrum dues upfront. The company had an option to pay Rs. 3,848.88 crore upfront and the rest in 19 annual instalments.

Airtel 5G Services Rollout to Begin in August: Details

Airtel said it believes that this upfront payment, coupled with the moratorium on spectrum dues and AGR (adjusted gross revenue)-related payments for four years, will free up future cash flows and allow Airtel to dedicate resources to single-mindedly concentrate on the 5G rollout.

Why is 5G taking so long? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.