Telecom

Telcos may get 16 years to make deferred payment for 5G spectrum, says report

Updated : July 12, 2019 08:45 AM IST

The initial discussions, the report said, are suggesting that the telcos will be required to give an upfront payment of between 5 and 10 percent of the value of the spectrum a telco buys at the auction.

The Department of Telecommunications (DoT) is likely to opt for the staggered route after the Telecom Regulatory Authority of India (Trai) did not lower the reserve price of Rs 492 crore per MHz for the 5G band, the report said.

Telcos may get 16 years to make deferred payment for 5G spectrum, says report

The government is considering allowing telecom companies to make a staggered payment for the upcoming 5G spectrum auction, Business Standard reported.

Sources told the paper that the telcos are likely to be allowed to make the full payment within 16 years. "The Digital Communications Commission (DCC) had pointed out the financial stress in the sector and that needs to be addressed," a source familiar with the matter was quoted as saying in the report.

The deferred payment mode will be in accordance to the recommendations stated by the DCC in January 2018.

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