Govt issues demand notes to 7 telcos for spectrum purchase-:- Equity Research

Government today issued demand notes to seven telecom operators to make payment in 10 days for the spectrum they bought in the just-concluded auction. In the five-day spectrum auction that concluded last week, seven telecom companies made commitments of Rs 65,789 crore for buying 964.80 MHz of spectrum in various frequency bands. "The demand note for payment has been issued to all successful bidders via email today evening," sources told PTI. As per the NIA or the bid document, the operators will have 10 days from the date of issue of demand note to make the payment for successful bid amount. Accordingly, they would have to make the payment by October 20. Bids were received for 964.80 MHz of spectrum out of 2,354.55 MHz across seven bands put on offer. Even at the end of the auction, nearly 60 per cent of the spectrum remained unsold, including the expensive 700MHz band, which found no takers. UK-based Vodafone's India unit was the most aggressive, taking home Rs 20,279 crore worth of spectrum. Bharti Airtel, the nation's biggest telecom company, bought Rs 14,244 crore worth of spectrum, while Idea Cellular put in Rs 12,798 crore of bids. Newcomer Reliance Jio spent Rs 13,672 crore on spectrum buying. Other operators who bought spectrum included Tata Teleservices (about Rs 4619 crore), RCom (about Rs 65 crore) and Aircel (Rs 111 crore).