Spectrum auction: DoT to issue demand note to telcos this week for payment

Sunil Mittal's Airtel emerged as the biggest bidder for radio waves

The telecom department is expected to issue a demand note to telcos this week for the payment of spectrum they bought in the just-concluded auction, according to a source.

The telecom department is expected to issue a demand note to telcos this week for the payment of spectrum they bought in the just-concluded auction, according to a source.

The auction— lasted for two days spanning seven rounds this time around— witnessed the sale of 141.4 MHz of radio waves for ₹11,340.78 crore.

In all, 10,500 MHz of radiowaves used for mobile services worth over ₹96,238 crore were placed on the block during the auction started on June 25.

Sunil Mittal's Airtel emerged as the biggest bidder for radio waves, cornering about 60% of the ₹11,341 crore worth of spectrum sold in this auction.

Airtel bid and won airwaves worth ₹6,856.76 crore, and rival Mukesh Ambani's Reliance Jio - the market leader - got ₹973.62 crore worth of spectrum - the least in the three-way contest.

Vodafone Idea's (VIL) bid for spectrum was valued at about ₹3,510.4 crore.

As per sources, the demand note would outline both options - upfront payment or payment via instalments and is expected to be sent out early this week to various telecom companies.

As per the terms of the bid document, the payments have to be made within 10 days of the issue of the demand note.