InvestorQ : When is the next round of telecom spectrum auctions due and how do you expect the response from the telecom companies?
diksha shah made post

When is the next round of telecom spectrum auctions due and how do you expect the response from the telecom companies?

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Rutuja Nigam answered.
2 months ago
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The Department of Telecom or the DOT has confirmed that the sixth round of telecom spectrum auctions will commence on March 01. The auctions will be worth Rs.392,000 crore and while the entire amount will be spread over a number of years, the government should be at least able to book part of this amount in the current year.

The reasons are not far to seek. The government is looking to book more revenues in the current year itself, which is almost a necessity now with the direct and indirect tax revenues likely to fall well short of the original budget estimates and leave a fiscal deficit of nearly 8% to 8.5% of the overall GDP for the fiscal year 2020-21.

For the auction process, the DOT has fixed 05 February as the last date for participating in the auction and the final list of bidders will be officially announced on 24 February. The DOT will auction 2251.25 Megahertz MHz in a total of 7 frequency bands. Bands above 3300-3600 MHz will be kept aside for the rollout of 5G services. That is still subject to testing.

The DOT made spectrum available across all the 22 telecom circles across the country with some capacities across fewer circles. Successful bidders have to make upfront payment within 10 days of the acceptance of the bids by the DOT. There will be a moratorium of 2 years and then spectrum charge will be recovered over 16 instalments from the bidder.

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