According to Mint report on June 30, industry executives and analysts said that India's Bharti Airtel (Bharti Airtel) and India's Reliance Jio are unlikely to use commercial banks to fund their spectrum auction purchases because of the purchase of 5G and other radio waves. The initial outlay is likely to be less than Rs 5,000 crore, mainly due to the government relaxing the payment terms offered.
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Telecom operators are preparing strategies to buy 5G airwaves in the auction that will start on July 26, but unlike the previous auctions, an industry executive said, "Airtel and Jio have enough funds to fund them The spectrum purchased in the auction this time, even as they purchased pan-India 5G airwaves and additional airwaves in the 26Ghz band,”
The government has relaxed the payment terms for carriers in this auction by eliminating upfront payment of 25% or 33% of the bid amount. % requirement, eliminating the requirement to provide a financial bank guarantee equal to the annual payment amount. Spectrum purchased in the auction will be allocated for 20 years and spectrum payments can be made in 20 equal annual installments, with the first-year payment starting from the current financial year expected to be a fraction of what telcos paid after recent auctions, analysts said.
(compiled by: Liu Shuang)
