Vodafone and Tata pay pay over Rs 12,000 Cr to DoT for spectrum purchase

Telecom operators Vodafone and Tata Teleservices on Wednesday made payments of Rs 10,100 crore and Rs 2,300 crore, separately, to the government for spectrum they bought recently concluded auction. The two telecom organizations made the payment to the Department of Telecom (DoT), a day prior to October 20, which is the last date for making spectrum payment.

Vodafone, which emerged as the most aggressive bidder in the late spectrum sell off, paid Rs 10,100 crore under the deferred payment option, which includes part upfront payment and balance payment in ten yearly portions following a two-year suspension, DoT sources told PTI.

On account of deferred payment option, telecom operators are required to pay 50 percent of the offer sum upfront for spectrum bought in 1800 Mhz, 2100 Mhz, 2300 Mhz, and 2500 Mhz bands, and 25 percent of the offer sum on account of spectrum in the 800 Mhz band.

Vodafone likewise paid a financial bank guarantee of Rs 1,900 crore, sources included.

The nation's second-largest telecom operator had made bids worth Rs 20,280 crore to secure spectrum in all its key telecom circles crosswise over 1800, 2100 and 2500 MHz bands, and its general spectrum spend set it in front of different adversaries, for example, Bharti Airtel, Idea Cellular and the newcomer Reliance Jio.

Tata Teleservices additionally made its spectrum payment. The organization – which had battled furiously to ensure its spectrum holding in three circles, including the very lucrative Mumbai market – paid about Rs 2,300 crore to DoT for airwaves it bought in the late sale.

Tata Teleservices bought airwaves worth Rs 4,619 crore in circles of Mumbai, Maharashtra, and Andhra Pradesh in 1800 MHz band, amid spectrum barters which concluded as of late.

It was critical for the Tata Group to get spectrum in the Mumbai and Maharashtra circles as its permit in these lucrative circles is set to expire one year from now.

The spectrum sell off – which was touted as India's largest sale of airwaves - finished on October 6 after only five days of offering and garnered bids of just Rs 65,789 crore against a desire of Rs 5.6 lakh crore, leaving about 60 percent of airwaves, including premium 4G bands, unsold.

Bharti Airtel, the country's greatest telecom organization, bought Rs 14,244 crore worth of spectrum, while Idea Cellular put in Rs 12,798 crore of bids.