Airtel prepays ₹3,626 Crore spectrum dues to DoT

20 Dec 2024 , 07:23 AM

Bharti Airtel announced that the company has paid ₹3,626 Crore to the Department of Telecommunications (DoT). It stated that the payment is against all liabilities associated with airwaves purchased in the 2016 auction. This will allow India’s second-largest telco to save money on interest charges each year while also increasing cash flows as it swiftly extends its nationwide 5G network and 4G rural coverage.

With this, Airtel has cleared all liabilities for spectrum acquired in 2016 and prepaid all its spectrum dues with interest costs greater than 8.65%.

The business noted that with the latest payment, it has prepaid ₹28,320 Crore in spectrum dues for calendar 2024.

According to persons familiar with the situation, the majority of the funds for the most recent spectrum prepayment tranche came from Airtel’s own cash flows.

In the 2016 sale, Airtel paid ₹14,244 Crore for 173.8 units of airwaves in the 1800, 2100, and 2300 MHz bands.

In September 2024, Airtel originally prepaid ₹8,465 Crore to the DoT for spectrum obtained in the 2016 sale in order to reduce interest charges and save up cash. Before that, in June 2024, the company prepaid another ₹7,904 Crore, clearing all deferred liabilities related to airwaves purchased in the 2012 and 2015 auctions.

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