Telecom operator Bharti Airtel on Friday said it has cleared deferred liabilities worth Rs 15,519 crore for the spectrum it acquired in 2014.

The company said the move would enable it to save Rs 3,400 crore .

Bharti had acquired 128.4Mhz spectrum, including that of Telenor, for a consideration of Rs 19,051 crore in the 2014 auction.

The liabilities were due between 2026-27 and 2031-32 with 10 per cent interest, which was the highest rate amongst deferred liabilities and borrowings. It carried an average residual life of more than 7 years.

“Airtel continues to exercise flexibilities towards a stronger and efficient capital structure. The company welcomes the DoT’s decision giving the industry the flexibility to prepay their deferred liabilities anytime at their NPV basis. This allows the licensees to efficiently plan and use their cash flows,” it said.

The telecom sector recently got a shot in the arm with the government approving a blockbuster relief package for the industry, which included a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid, and allowing 100 per cent foreign investment through the automatic route.

The measures, aimed at providing relief to companies, also included the scrapping of spectrum usage charge (SUC) for airwaves acquired in future auctions.

Airtel has already stated that it will opt for four-year payments moratorium — on AGR and spectrum dues — being offered by the government as part of a relief package for the telecom sector.

The company registered net profit of Rs 1,134 crore for the September 2021 quarter against a loss (attributable to owners of the parent) of Rs 763.2 crore during the year-ago quarter.

Bharti Airtel’s about Rs 21,000 crore rights issue, which had opened on October 5 and closed on October 21, 2021, was oversubscribed.