Aakash Ambani led Reliance Jio Infocomm acquired 5G spectrum in the 700MHz, 800MHz, 1800MHz, 3300MHz and 26GHz bands in an auction held by the Department of Telecommunications (DoT) last year. Total cost of acquiring the right to use the technology agnostic spectrum for a period of 20 years is Rs 88,078 crore. As Mukesh Ambani backed telecom giant moves to roll out of 5G network throughout the country by the end of this year, Reliance Jio Infocomm will have to pay a massive installment to the Indian government body this week. As per a report by The Economic Times, Ambani’s Reliance Jio Infocomm will have to pay Rs 7864 crore to DoT as the second installment for the 5G spectrum acquired last year.
The report mentions that a person aware of the matter has revealed that “the deadline for the second installment payment for 5G spectrum acquired is August 17, and Jio will definitely pay on time.” As per terms of the spectrum auction, the spectrum payments have to be made over 20 equated annual installments, with interest computed at 7.2% per annum.
Jio has acquired a unique combination of low-band, mid-band and mmWave spectrum, which coupled with the company's deep fibre network and indigenous technology platforms, enables it to provide 5G everywhere. Although Bharti Airtel has cleared its dues for four years in advance, Vodafone Idea and Adani Group also has to pay Rs 1680 crore and Rs 18.94 crore respectively as second installment for the 5G spectrum they acquired last year.
