Bharti Airtel has prepaid Rs 8,325 crore to the department of telecom towards its deferred liabilities for spectrum acquired in the 2015 auction, the company said on Tuesday.
Bharti Airtel won spectrum worth Rs 29,129.08 crore in the auctions that were held in March 2015. The company had paid Rs 11,374.7 crore, while the upfront amount due was Rs 7,832.20 crore.
This will help India’s second-largest telecom company save on interest costs annually and boost cash flows ahead of the next 5G spectrum sale in March.
The Sunil Mittal-led telco needs to renew airwaves worth around Rs 4,200 crore that are expiring this year.
Its upcoming airwave renewals are in the 900 MHz and 1800 MHz bands in six circles — J&K, Odisha, Bihar, UP-East, Bengal and Assam.
The company had opted for a four-year moratorium on spectrum and adjusted gross revenue (AGR) payments, which were estimated to give it around Rs 48,000 crore in cash flow relief over the time period.
According to official data, telecom operators owe over Rs 1.65 lakh crore to the government in adjusted gross revenue up to the financial year 2018-19.
The calculation shows total AGR liability on Bharti Airtel is Rs 31,280 crore,
Vodafone Idea Rs 59,236.63 crore, Tata Group Rs 12,931.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore and MTNL Rs 5,009.1 crore up to financial year 2018-19.
