DoT ups spectrum cap, payment installments

"The Licensee may opt one time for higher number of instalments including in the current financial year 2017-18 (maximum 16 instalments) for deferred payment liabilities as per Notice Inviting Application (NIA) for auctions conducted for award of spectrum in the years 2012, 2013, 2014, 2015 and 2016," a Department of Telecom note on licence amendment said.

Before this amendment, a portion of spectrum auction amount used to be taken as upfront payment by Department of Telecom(DoT) and the balance, after a two-year moratorium, was paid out every year -- 10 instalments in all.

The amendment is part of relief measures approved by the Cabinet early this month for the sector reeling under debt of 7.87 lakh crore and suffering from reduction in margins due to cut-throat competition induced with entry of Reliance Jio.

There will be no change in value and interest rate that telecom companies have to pay for the spectrum. The total amount that telecom operators will pay for the spectrum will be higher by Rs 74,446.01 crore till 2034-35 if they opt for more number of instalments.