- Bharti Airtel has paid ₹15,519 Crores to the DoT pertaining to the 128.4 MHz spectrum acquired in 2014 for a consideration of ₹19,051crores.
- This will help it in saving approximately ₹3,400 crores during the residual life for fully substituted capital.
- It is channelling investments towards its 4G and 5G footprints.
- Share of Bharti Airtel closed at Rs 666.45 on 17 Dec 2021
Telecom operator Bharti Airtel on Friday said that it has paid ₹15,519 crores to the Department of Telecom (DoT) towards prepayment of its entire deferred liability pertaining to spectrum acquired in 2014 auction, according to a statement.
“These liabilities were due in annual instalments from FY 2026-2027 to 2031-2032, and carried an interest rate of 10 per cent (the highest rate among the deferred liabilities and borrowings) and an average residual life of 7 plus years,” the company said in a statement.
It had acquired 128.4 MHz spectrum (including a spectrum belonging to Telenor spectrum) for consideration of ₹19,051 crores. It estimates that it will save ~₹3,400 crores over the residual life for fully substituted capital and said that it continues to exercise flexibilities towards a stronger and efficient capital structure.
Currently, it is channelling investments towards expanding its 4G and 5G footprints and this saving will aid the company’s cashflows and CAPEX.
“The company welcomes the Department of Telecom’s decision giving the industry the flexibility to prepay their deferred liabilities anytime at their NPV (net present value) basis the interest rates specified for the respective auction. This allows the licensees to efficiently plan and use their cash flows,” according to the company.
