Spectrum Auction

Officials said deferred spectrum charges to be paid by telcos also make up a large chunk of the expected revenues

The Comptroller and Auditor General (CAG) asked the Department of Telecom (DoT) to review the spectrum pricing mechanism for captive users

Since last year, telecom companies have carried out 5G trials in the 700 MHz, 3.5 GHz, and 26 GHz bands

The government is aiming to begin roll-out of 5G services by end-March 2023 in India, which is the world's second-biggest wireless market with over a billion subscribers

This is the second such prepayment by Airtel in the last three months and comes on the back of strong cash flow generation, equity infusion and borrowing at significantly lower interest rates

Telecom operator Bharti Airtel on Friday said it has paid Rs 8,815 crore to the government towards part prepayment of deferred liabilities pertaining to spectrum acquired in the 2015 auction. The prepayment is for instalments due in FY2027 and FY2028, the Sunil Mittal-led telco said in a statement. "Airtel prepays Rs 8,815 crore to clear deferred liabilities for spectrum acquired in 2015," the company said. Over the last four months, Airtel has cleared Rs 24,334 crore of its deferred spectrum liabilities ahead of schedule. These liabilities carried an interest rate of 10 per cent and have been paid off through a combination of free cash generated by the business, equity proceeds, and significantly lower cost debt of a similar tenor. Airtel said it continues to focus on financial flexibility via its capital structure, including optimising the cost of financing and capitalising on all opportunities of significant interest saves, like the latest prepayment.

Telcos seek easy payment terms of 20-25 years, with 5-6 years of moratorium

Currently, DoT allocates airwaves by administered price mechanism

Here's a selection of Business Standard opinion pieces for the day

We are losing out on so much of our potential because of regulatory constraints

Promoters to dilute stake post conversion

In a market of 1.3 billion with only about a half having access to mobile broadband, the untapped user base still holds much promise

Here's a selection of Business Standard opinion pieces for the day

Reserve price for future auction could be cut, says CLSA

Reliance Jio has bagged more than 50 per cent of the total quantum of airwaves sold by paying Rs 57,122.65 crore. Of the 855.6 megahertz of spectrum sold, Jio has got 488 megahertz

DoT may garner Rs 20,000 crore as upfront payment in FY21

The results of telecom spectrum auctions, that grossed over Rs 77,800 crore, have "exceeded" initial estimates, ICRA said on Tuesday. While the value of sales was just 19 per cent of the value of total spectrum on offer, the debt levels of the industry are expected to rise further, post the auctions, and the debt protection metrics would continue to remain weak despite improvement in operating metrics, it said. Commenting on the telecom spectrum auctions, Ankit Jain, Assistant Vice-President, ICRA, said that the outcome exceeded earlier estimates and have fetched the exchequer around Rs 77,800 crore of which around Rs 28,000 crore will have to be paid upfront. "The telcos not only bid for renewals of the expiring spectrum but focused on consolidating their spectrum holdings in the 800 MHz, 900 MHz and 2300 MHz bands. While the sub-GHz bands will be crucial for 5G technology deployment going forward as well as improvement of indoor coverage, the appetite for 2300 MHz band stems from

Reliance Jio said its acquired spectrum can be utilised for transition to 5G services at the ''appropriate time'', where it has developed its own 5G stack

About one-third of the spectrum being auctioned is in the 700 MHz band, which was completely unsold during the 2016 auctions

The auction, which put on offer a total of 2308.80 MHz of spectrum worth Rs 4 lakh crore in seven bands, concluded on Tuesday, just a day after it commenced