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DoT demands Rs 21,919 crore from telecom companies as upfront payment for spectrum

As per reports, DoT has sent notices to Reliance Jio, Bharti Airtel and Vodafone Idea, demanding around Rs 21,919 crore.

This is as a part of the upfront payment for spectrum bought in the just ended auctions.

Moreover, the telecom department has sought upfront payment from telcos if they choose to spread their dues over 16 years.

This includes Rs 15,019.84 crore from Jio, Rs 6,323.98 crore from Airtel and Rs 574.65 crore from Vodafone Idea respectively.

Further, the carriers are required to pay up in 10 working days.

However, DoT has also sent, to each telco, the total value of the spectrum bought besides the amount they owe.

In fact, it requires the telecom giants to choose the deferred payment option.

Meanwhile, buyers had an option to pay upfront 50 percent of final bid for 1,800, 2,100, 2,300, and 2,500MHz bands.

The buyers can pay the remaining amount in 16 equal instalments over a two year period at 7.3 percent interest.

This is a part of the standard procedure for the spectrum auction as per the telecom department.

Also, the buyers must pay three percent of the Adjusted Gross Revenue excluding wireline services.

It is due to the spectrum usage charges for the spectrum winning through this auction.

Moving forward, Jio picked up spectrum in 22 circles across India in 800 MHz, 1800 MHz and 2300 MHz bands. This amounted to Rs 57,123 crore respectively.

Also, Rival Airtel acquired 355.45 MHz of spectrum across the 800 MHz and 900 MHz bands.

Vi, the least aggressive bidder in 4G auction, purchased 11.8 MHz of airwaves in five circles for Rs 1,993.4 crore.

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