The Finance Ministry has proposed to the Department of Telecommunications (DoT) to examine the possibility of up front collection of 35 per cent of the final bid amount quoted by the operators in the forthcoming auctions. The ministry is of the view that such a measure would increase the revenue accruing to the exchequer in 2015-16.

However, DoT had earlier proposed to collect the upfront payment ranging between 25 and 33 per cent of the final bids for different frequency bands from the operators. According to the Telecom Commission’s decision, the telecom service providers who win spectrum in the 1800 MHz band need to pay 33 per cent of the bid amount upfront and the balance over the next ten years. The operators who win frequency airwaves in the 900 MHz band need to pay 25 per cent upfront. The spectrum auctions held in February 2014 had the same payment schedule. But, the finance ministry has now asked DoT to weigh the option of a higher percentage of upfront payment for the auctions scheduled for February 2015.

Meanwhile, DoT is unlikely to accept the ministry’s proposal citing the fact that the Cabinet has already approved the payment schedule proposed by the Telecom Commission and therefore, any alterations in the schedule would be difficult to make.