Airtel prepays spectrum dues worth ₹8,465 cr

New Delhi: Bharti Airtel has prepaid another ₹8,465 crore to the DoT against 173.8 MHz of spectrum acquired in 2016, in a bid to lower interest costs and free up cash as it deepens its 4G network and expands 5G services. The company had total dues of ₹14,244 crore, which was deferred as part of the telecom relief package doled out by the government in 2021, India's second-largest telecom operator said in a statement on Monday. "These liabilities carried an interest rate of 9.3%," it said.

The majority of the cash was spent out of Bharti Airtel's own cash flow, while a small part was raised from banks at a lower interest rate, said executives aware of the development. They added that the prepayment also partially cleared dues from Videocon's spectrum assets acquired by Bharti Airtel in 2016. The company did not disclose the rate of interest on the remaining dues.

Analysts said the prepayment will help the telco save on interest costs annually and boost cash flows, as its nation-wide 5G rollout nears completion.


The telco had earlier prepaid ₹7,904 crore to the telecom department, clearing all its deferred liabilities related to spectrum bought in the 2012 and 2015 auctions. On Monday, shares of Bharti Airtel closed 1.46% lower on BSE at ₹1,709.90.