The licences for some of the 4G spectrum held by telecom companies (telcos) expire next year
The figure is based on the base price of spectrum for the upcoming auction fixed by the TRAI and on the assumption that there will be no bidding war
Given the high possibility of operators shying away from participation, the DoT is yet to decide on including the premium 5G spectrum in the tender.
The Centre has budgeted Rs 1.33 trillion as non-tax receipts from the telecom sector for FY2021
He said the auction will entail sale of over 8300 MHz of spectrum spread over all 22 telecom circles, the reserve price of which comes to Rs 5,22,850 crore
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Telecom operators, battling financial stress, have for long voiced their protest against high base price of 5G spectrum
In June this year, Telecom Minister Ravi Shankar Prasad had said the government will hold spectrum auction for 5G and other bands in the current calendar year
Trai has recommended auction of about 8,644 MHz of telecom frequencies at an estimated total base price of Rs 4.9 trn
At current tariffs, operators' revenues are not able to cover their operating costs and network capex
Says annual spectrum auctions not optimal, 2-3 year timeframe more efficient
Telecom Secretary has said the government is looking at making spectrum auction an annual event
Next auctions could be held by year-end
It has allowed telecom companies to claim deductions for expenditure made in instalments