Airtel pays Rs15,519-Cr in advance to settle deferred spectrum liabilities
Airtel pays Rs15,519-Cr in advance to settle deferred spectrum liabilities
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Telecom conglomorate Bharti Airtel announced on Friday that it has pre-paid the Department of Telecom Rs.15,519 crore to settle all delayed liabilities related to spectrum purchased in the 2014 auction. In the 2014 spectrum auction, the business paid Rs.19,051 crore for 128.4 MHz bandwidth, including Telenor spectrum.

These liabilities had an average residual life of 7-plus years and were due in annual instalments from FY 2026-2027 to FY 2031-2032. They had a 10 percent interest rate (the highest rate among the deferred liabilities and borrowings) and a 10 percent interest rate (the highest rate among the deferred liabilities and borrowings). The company expects that the prepayment will save at least Rs.3,400 crore in interest costs during the residual life of completely substituted capital.

"Airtel continues to be flexible in its capital structure in order to achieve a stronger and more efficient capital structure. The company applauds the Department of Telecom's decision to allow the industry to prepay deferred obligations at any time at their NPV based on the interest rates set for each auction. This allows licensees to plan and utilise their cash flows more efficiently "In a statement, Bharti Airtel stated.

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