Airtel pays ₹15,519cr to DoT towards deferred spectrum acquired in 2014
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3 years ago 04:15:29pm Television

Airtel pays ₹15,519cr to DoT towards deferred spectrum acquired in 2014

New Delhi, 20-December-2021, By IBW Team

Airtel pays ₹15,519cr to DoT towards deferred spectrum acquired in 2014

Bharti Airtel (Airtel), India’s premier communications solutions provider on Friday said that it has paid ₹15,519cr to the Department of Telecommunications (DoT) towards prepayment of the entire deferred liabilities about spectrum acquired in the auction of 2014.

The company had acquired 128.4 MHz spectrum (including Telenor spectrum) for consideration of ₹19,051cr in the 2014 auction.

These liabilities were due in annual instalments from fiscal year (FY) 2026-2027 to 2031-2032 and carried an interest rate of 10 per cent (the highest rate amongst the deferred liabilities and borrowings) and an average residual life of 7+ years, the company said in a statement.

The company estimates that the prepayment will likely result in interest cost savings of at least ₹3,400cr over the residual life for fully substituted capital, it said.

“Airtel continues to exercise flexibilities towards a stronger and efficient capital structure. The company welcomes the DoT’s decision giving the industry the flexibility to prepay their deferred liabilities anytime at their NPV basis the interest rates specified for the respective auction. This allows the licensees to efficiently plan and use their cash flows,” it added.


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