Airtel partially pays spectrum dues with Rs 8,024 crore
Airtel has prepaid a total of 8,024 billion rupees in order to partially clear its spectrum obligations. The business stated that the instalment carried an interest rate of 10% and had been paid in full, enabling it to take advantage of significantly more affordable financing options.
NEW DELHI: Bharti Airtel, a telecom company, has paid the Department of Telecommunication (DoT) Rs 8,024 crore in order to partially prepay deferred liabilities related to spectrum purchased in the 2015 auction.
According to the corporation, the installment had a 10% interest rate and was prepaid using considerably more affordable financing options.According to the company in an exchange filing, “Airtel continues to enjoy access to well-diversified sources of capital/financing, allowing it to have enhanced financial flexibility in its capital structure, including optimised cost of financing by taking advantage of all opportunities for significant interest savings, like this prepayment.”
Airtel paid Rs 8,815 crore last year in March to settle debts related to airwaves it purchased in 2015, and Rs 15,519 crore in December 2021 to pay off all outstanding debts related to spectrum it purchased in 2014. The action is anticipated to improve cash flow for the carrier and result in yearly interest expense savings. Since October 2022, the business has been quickly introducing its 5G services across the nation.Up until July 7, 2023, Airtel will have erected 53,223 5G towers nationwide, according to government data. By September 2023, the business hopes to have reached all significant Indian cities.Last year, the Sunil Mittal-led telco spent $19 billion to purchase 5G spectrum. A total of Rs 8,312 crore ($5.24 billion) of the Rs 43,084 crore ($5.24 billion) in spectrum that the telco acquired has been reimbursed.
Comments are closed.