2G spectrum winners will have to pay by December 1
Recently, the government concluded auction of GSM spectrum earning a total of Rs 9,407.64 crore against a minimum potential of Rs 28,000 crore.
New Delhi: Winners of recently held 2G spectrum auction will have to make payment, either in full or at least 33 per cent of the due amount, by December 1, the Department of Telecom said on Thursday. "... the last date for payment is December 1, 2012. If the payment is not received by the last date, the EMD (earnest money deposit) will be forfeited," DoT said in the notice.
Recently, the government concluded auction of GSM spectrum (1800 Mhz band airwaves frequencies) earning a total of Rs 9,407.64 crore against a minimum potential of Rs 28,000 crore. As per the auction result, Telenor-promoted Telewings Communications won spectrum in six telecom circles and will have to pay maximum in the total amount at Rs 4,018.28 crore, followed by Videocon Telecommunications at Rs 2,221.44 crore, Idea Cellular Rs 2,031.31 crore, Vodafone Rs 1,127.94 crore and Bharti Airtel will have to pay Rs 8.67 crore.
Vodafone won spectrum in most of the circles. This include Jammu and Kashmir, Assam, Himachal Pradesh, Uttar Pradesh (East), Uttar Pradesh (West), Madhya Pradesh, West Bengal, Haryana, Bihar, Kerala, Orissa, North East, Punjab and Kerala. Idea Cellular deposited the highest EMD of Rs 1,306.75 crore, followed by Telewings at Rs 1,096 crore, Videocon Telecommunications Rs 648 crore, Vodafone Rs 229 crore and Bharti Airtel Rs 102.75 crore.
Spectrum winners have been given option to opt for deferred payment under which they can pay 33 per cent upfront by December 1 and the rest in installments after two year moratorium. In case these companies opt for defferred payments then Telewings will have to pay Rs 1,326.03 crore upfront, Videocon Rs 733.08 crore, Idea Cellular Rs 670.33 crore, Vodafone Rs 372.22 crore and Bharti Airtel Rs 2.86 crore.
Government will give option to companies whose licences were cancelled to adjust entry fee (paid for licences in 2008) in the amount they have to pay as per their preference, a DoT official explained. "They can set-off entire amount from initial set-of payment or from the gross amount they have to pay. Based on their indication, we will re-calculate their installment amount," the official said.
Uninor, in which Telenor had majority stake, paid Rs 1,658 crore for licences in 2008, Videocon (then Datacom) gave around Rs 1,500 crore and 13 licences of Idea Cellular cost the company Rs 1,168 crore. As per decision of Empowered Group of Ministers on spectrum, the benefit of adjustment is only for those companies who have not been found guilty or there is no case pending in court in 2G matter.