Telecom operators including Bharti Airtel, Reliance Jio, and Vodafone Idea Limited (Vi) have sought a 5-6 years interest-free payment gap or moratorium on the spectrum bought in auctions in 2025 and beyond.
In a communication to the Telecom Regulatory Authority of India (TRAI), telcos noted that such a moratorium is needed on spectrum bought in auctions from next year because they have incurred huge capital expenditure (capex) in rolling out 5G services, which they are yet to monetise. In addition, they need to keep on investing in their networks.
The operators have also urged for a new payment method in addition to the two existing payment terms for spectrum bought in auctions. Currently, one of the options for payment is an upfront payment equal to the spectrum installments of a minimum of two years, with the balance payable in equal installments with applicable interest, within the 20-year spectrum holding period.
In addition, the operators have also sought reduction in reserve price of spectrum for the newly identified spectrum bands.
With respect to the cap on quantity of spectrum each player can hold, Jio suggested that the government should do away with any such requirement, meanwhile Airtel and Vi have recommended a 35-40 per cent cap on spectrum holding for the three range of bands to avoid monopoly and maintain a level-playing field.
