DoT Anticipates Limited Revenue during Spectrum Auctions 2024 

The Department of Telecommunications (DoT) has revised its anticipated revenue from the forthcoming spectrum auctions, signaling a significant reduction in expected earnings. Initially, the government aimed to generate Rs 5,000 crores from the spectrum auctions scheduled for the last quarter of FY24. However, a report that DoT has slashed the revenue target to Rs 500 crores for the auction expected in March 2024. 

This adjustment aligns with the sentiments expressed by telecom companies. Bharti Airtel has iterated its stance of minimal expenditure in the upcoming spectrum auctions. The focus for Airtel remains on renewing spectrum only in the circles where it faces imminent expiration. This approach contrasts sharply with the substantial Rs 1.5 lakh crore revenue earned by the government in the preceding auctions held in August 2022. 

Vodafone Idea (Vi) has yet to deploy 5G infrastructure. The government has reportedly issued a show-cause notice to Vi, questioning why penalties should not be imposed for failing to meet the minimum 5G rollout obligations. Adani Data Networks faces similar inquiries for non-compliance. Among the major players, only Airtel and Jio have launched 5G services and met the stipulated rollout requirements. 

With the downward adjustment in revenue expectations from the spectrum auctions, the projected revenues for DoT in FY24 from the telecom sector have been revised to Rs 85,000 crores from the earlier estimate of Rs 90,000 crores. According to the report, contributions from license fees, spectrum usage charges (LF/SUC), and spectrum instalments are anticipated to amount to Rs 50,000 crores for the government. Reliance Jio, with no spectrum expiring in the near future across any circle, is unlikely to make significant investments in the upcoming spectrum auctions. 

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