Govt asks telecom cos to pay for 5G spectrum auctioned in Jun
This story was originally published at 21:52 IST on 16 July 2024
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NEW DELHI – The Department of Telecommunication today sent demand notices to telecom companies -– Bharti Airtel Ltd, Vodafone Idea Ltd, and Reliance Jio Infocomm Ltd –- asking them to make payments towards the fifth-generation spectrum purchased by them in June. The telecom companies were asked to make these payments within 10 days.
In the auctions held in June, Bharti Airtel Ltd purchased 97 MHz spectrum for 68.57 bln rupees, followed by Vodafone Idea Ltd, which acquired 30 MHz spectrum worth 35.10 bln rupees. Reliance Jio Ltd bought 14.4 MHz spectrum for 9.74 bln rupees.
The government has given two options to the telecom companies to make the payments. Companies can either make the full payment or a portion of the upfront payment, which can be a multiple of full years and covering at least two years. In this option, they will be able to avail a moratorium for the corresponding number of years. The balance will be paid in equal instalments over the remaining period, payable in advance at the beginning of each year. This ensures the net present value of the bid amount is maintained at the applicable interest rate. These annual instalments would be payable on the anniversary of the effective date anniversary, as mentioned in the notice inviting applications.
The second option entails paying the bid amount in 20 equal annual instalments with the applicable interest rate. In this option, payments are required at the beginning of each year. The government has also asked the telecom companies to make goods and services tax payments.
Today, shares of Bharti Airtel ended 2.0% higher at 1,466.50 rupees on the National Stock Exchange, while those of Jio parent Reliance Industries Ltd ended 1.3% lower at 3,152.50 rupees and those of Vodafone Idea Ltd ended 0.7% higher at 16.80 rupees. End
Reported by Kuldeep Singh
Edited by Tanima Banerjee
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