5G spectrum: Bharti Airtel pays ₹8,312.4 cr to Telecom Dept to clear 4-yr instalment in advance
1 min read 17 Aug 2022, 12:43 PM ISTThe firm had the option to pay ₹3,848.88 crore upfront and the rest in 19 annual instalments.
PremiumPrivate telecom operator Bharati Airtel on 17 August informed that it has paid ₹8,312.4 crore to the Department of Telecom towards dues for spectrum acquired in the recently concluded 5G auctions.
With the payment, the telco has paid four years of 2022 spectrum dues upfront.
According to Bharti Airtel, the upfront payment, coupled with the moratorium on spectrum dues and AGR (adjusted gross revenue)-related payments for four years, will free up future cash flows and allow Airtel to dedicate resources to single-mindedly concentrate on the 5G rollout.
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Earlier, business tycoon Sunil Bharti Mittal-led Bharti Airtel had made a successful bid of ₹43,039.63 crore.
"This upfront payment of 4 years allows us to drive 5G rollout in a concerted manner given our operating free cash flow. Airtel also has access to ₹15,740.5 crore in capital from the rights issue, which is yet to be called," Bharti Airtel MD and CEO Gopal Vittal said in the statement.
"With the ideal spectrum bank, best technology and adequate free cash flow, we are excited to bring to the country a world-class 5G experience," Vittal added.
Though the firm had the option to pay ₹3,848.88 crore upfront and the rest in 19 annual instalments.
In July, in the 5G auction, the Department of Telecom received a record ₹1.5 lakh crore worth of bids, with Mukesh Ambani's Jio cornering nearly half of all the airwaves sold with ₹87,946.93 crore bid.
Meanwhile, Bharti Airtel had said that over the last one year, it has cleared ₹24,333.7 crore of its deferred spectrum liabilities much ahead of scheduled maturities.
With PTI inputs.
