Telcos to pay 33% upfront payment in 2100 Mhz band: DOT

Quantum of spectrum in 2,100-MHz band 75% less than Trai's suggestion

Telecom operators will have to make an upfront payment of 33 per cent after winning spectrum in the 2,100-MHz band auction starting March 4.

According to details issued by the department of telecommunications (DoT) for the 2,100-MHz band, it will auction five MHz of spectrum in this band across 17 of 22 service areas at a pan-India base price of Rs 3,705 crore per MHz.

The quantum of spectrum in the 2,100-MHz band being auctioned is 75 per cent less than the quantum recommended by the Telecom Regulatory Authority of India (Trai) and demanded by the industry.

One block of five MHz has been put for auction in all service areas except Jammu & Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab. The government is expecting revenues of about Rs 17,555 crore from the auction of spectrum in the 2,100-MHz band. Of this, a sum of Rs 5,793 crore is expected to be realised in the current financial year.

Only one entity will be able to win the 2,100-MHz spectrum in one service area, according to DoT.

The last date for applications is February 16.

The auction from March 4 will include spectrum from the 800, 900 and 1,800-MHz bands and the government expects to earn Rs 1 lakh-crore from the sale.

For the 1,800-MHz band, operators will have to make an upfront payment of 33 per cent, while for the 800-MHz and 900-MHz spectrum bands, the upfront payment will be 25 per cent. After upfront payment, there will be a moratorium for two years.