Telecom operators seek 5-6 year moratorium on spectrum purchases after 2025

Bharti Airtel, Reliance Jio, and Vodafone Idea have requested a 5-6 year grace period without interest, or moratorium, on payments for the spectrum acquired in auctions from 2025 onwards, according to a report in the Financial Express.

Spectrum is typically leased to operators for a 20-year term, implying that the operators will pay over a 14-15 year period through equal annual installments.

In their communication to the Telecom Regulatory Authority of India (Trai), the operators said such a moratorium is needed on spectrum bought in auctions from next year. They cited significant capital expenditure incurred in deploying 5G services, which have yet to generate revenue. They also emphasised the ongoing need for further investment in their networks.