Bharti Airtel today said that it has strengthened its financial position by prepaying Rs 8,325 crores to the Department of Telecom (DoT), Government of India, settling part of its deferred liabilities related to spectrum acquired in the 2015 auction, according to the company's announcement.
Also Read: Airtel Prepays Rs 8,024 Crores to Clear 2015 Spectrum Liabilities
Strategic Prepayment
The move to make a substantial prepayment on the spectrum acquisition liabilities is aimed at leveraging the lower-cost financing options available to Airtel. The instalments carried an interest rate of 10 percent, prompting the company to seize the opportunity for prepayment.
As reported by TelecomTalk, Bharti Airtel also announced in July 2023 that it prepaid Rs 8,024 crores to the DoT, contributing to the partial prepayment of the deferred liabilities pertaining to the spectrum acquired in the 2015 auction, incurring an interest cost of 10 percent.
Also Read: Bharti Airtel Elevates Connectivity in Ayodhya With Network Enhancements
Upcoming 5G Spectrum Renewals
In related update, according to TelecomTalk Spectrum Holding Legend, the upcoming 5G spectrum will only require Bharti Airtel to renew airwaves, as the telco faces spectrum renewals this year in the 900 MHz and 1800 MHz bands in six circles - Assam (900 MHz and 1800 MHz Band), Bihar (900 MHz and 1800 MHz Band), Jammu and Kashmir (900 MHz), Odisha (900 MHz and 1800 MHz Band), Uttar Pradesh East (900 MHz and 1800 MHz Band), West Bengal (900 MHz and 1800 MHz Band). The Department of Telecommunications (DoT) plans to conduct the new spectrum sale around March 2024.
Airtel Senior executives have previously said the telco doesn't need to buy the pricey 700 MHz band spectrum as it has abundant mid-band spectrum, enough to deliver capacity and coverage for its customers.
