NEW DELHI: The Department of Telecommunications (DoT) is likely to garner Rs 17,873 crore from the 5G spectrum auction this fiscal, according to industry sources. India’s largest telecom operator Reliance Jio paid Rs 7,864 crore, while Vodafone Idea (VIL) paid Rs 1679 crore and Adani Data Networks paid Rs 18 crore as their first instalment.
Meanwhile, India’s second-largest telco Bharti Airtel chose to pay four instalments of `8312.4 crores in one go, as against 20 equal annual instalments in the next 20 years. The Company believes that this upfront payment coupled with the moratorium on spectrum dues and AGR(adjusted gross revenue)-related payments for 4 years will free up future cash flows and allow Airtel to dedicate resources to concentrate on the 5G rollout.
“This upfront payment of 4 years allows us to drive 5G rollout in a concerted manner given our operating free cash flow. Airtel also has access to Rs 15,740.5 crore in capital from the rights issue, which is yet to be called. With the ideal spectrum bank, best technology and adequate free cash flow, we are excited to bring to the country a world-class 5G experience,” said Gopal Vittal, MD and CEO of Bharti Airtel.
The telecom ministry garnered Rs 1.53 crore in the just-concluded auction. Among the bidders, Jio was the most aggressive bidder, followed by Bharti Airtel and Vodafone Idea. Jio spent Rs 88,078, Airtel invested Rs 43,084 crore, while VIL put in Rs 18,799 crore to acquire the 5G spectrum.
As per the 5G auction modalities, the participants were given the option to pay the dues in 20 equal annual instalments; they can pay the entire amount or part of it upfront. Such part payment would be for at least two years or more.
“Over last one year, Airtel has also cleared Rs 24,333.7 crore of its deferred spectrum liabilities much ahead of scheduled maturities,” said Airtel in a statement.