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<\/p>\nThe Department of Telecommunications (DOT) on Wednesday received over Rs 17,873 crore from companies towards 5G spectrum dues.<\/p>\n
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Nearly half the amount (Rs 8312.4 crore) was paid by Bharti Airtel, which made advance payments for four years to free up cash for future investments.<\/p>\n
Reliance Jio and Vodafone Idea paid Rs 7,864 crore and Rs 1,680 crore, respectively.<\/p>\n
Adani Enterprises, which has acquired spectrum for captive private networks, is reported to have paid Rs 18 crore.<\/p>\n
The first payout by telecom companies towards 5G spectrum dues is higher than the DoT’s initial calculation.<\/p>\n
The department had estimated these companies to pay up Rs 13,365 crore.<\/p>\n
The three private mobile service providers and Adani Group purchased 51,236 MHz of spectrum worth over Rs 1.5 trillion.<\/p>\n
Reliance Jio was the biggest buyer with a spectrum purchase worth Rs 88,078 crore.<\/p>\n
Airtel, which plans to roll out commercial 5G services this month, acquired 19,867 MHz of spectrum worth Rs 43,084 crore in various bands during the recent 5G spectrum auction.<\/p>\n
This included spectrum in 3.5 GHz, 26 GHz, and certain low and mid-bands.<\/p>\n
Vodafone Idea and Adani Enterprises acquired spectrum worth Rs 18,799 crore and Rs 212 crore, respectively.<\/p>\n
According to the DoT’s norms, these companies can make full or partial upfront payments for the spectrum.<\/p>\n
Companies also have the option to make payments in 20 annual equal instalments, protecting the net present value of the bid amount with an interest of 7.2 per cent.<\/p>\n
In a statement, Airtel said this advance payment, coupled with the moratorium on spectrum dues and adjusted gross revenue (AGR)-related payments, shall free up future cash flows and allow it to dedicate resources to single-mindedly concentrate on the 5G rollout.<\/p>\n
Over the past year, Airtel has cleared Rs 24,333.7 crore of its deferred spectrum liabilities much ahead of schedule.<\/p>\n
Gopal Vittal, managing director and chief executive officer of Bharti Airtel, said: “This upfront payment for 4 years allows us to drive the 5G rollout in a concerted manner, given our operating free cash flow.”<\/p>\n
Airtel also has access to Rs 15,740.5 crore in capital from the rights issue, which is yet to be called.<\/p>\n
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.<\/p>\n
Last week, during the post-result conference call, Vittal said the telecom firm plans to launch 5G services starting August, and will go for a nationwide rollout soon.<\/p>\n
“By March 2024, we believe we will be able to cover every town and key rural areas with 5G.<\/p>\n
“In fact, detailed network rollout plans for 5,000 towns in India are completely in place,” Vittal had said.<\/p>\n
The company has tied up with Ericsson, Nokia, and Samsung for network agreements.<\/p>\n
“While our three-year capex plan will remain around the same levels, this rapid rollout may see some advancing of capex on an in-year basis,” Vittal stated.<\/p>\n