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    Bharti Airtel settles 5G spectrum instalments for four years ahead of rollout of services

    Bharti Airtel settles 5G spectrum instalments for four years ahead of rollout of services

    Bharti Airtel settles 5G spectrum instalments for four years ahead of rollout of services
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    By CNBCTV18.com  IST (Updated)

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    Bharti Airtel has paid Rs 8,312 crore to the Department of Telecom (DoT) towards dues for spectrum acquired by the company in the recently concluded 5G auctions.

    Bharti Airtel on Wednesday said that it had paid Rs 8,312 crore to the Department of Telecom (DoT) towards dues for spectrum acquired by the company in the recently concluded 5G auctions.
    "Airtel has paid four years of 2022 spectrum dues upfront. The company believes that this upfront payment coupled with the moratorium on spectrum dues and AGR-related payments for four years will free up future cash flows and allow Airtel to dedicate resources to single-mindedly concentrate on the 5G rollout," Bharti Airtel said in an exchange filing.
    The telecom firm has also cleared Rs 24,333.7 crore of its deferred spectrum liabilities in the last one year, much ahead of the scheduled maturities, according to the statement.
    "Airtel also has access to Rs 15,740.5 crore in capital from the rights issue which is yet to be called. With the ideal spectrum bank, best technology and adequate free cash flow, we are excited to bring a world-class 5G experience to the country," said Gopal Vittal, MD & CEO, Bharti Airtel.
    Bharti Airtel stock was trading 1.52 percent higher at Rs 714 per share on BSE at the time of writing.
    The long-awaited high-speed 5G services are expected to be rolled out in about a month, Minister of State for Communications Devusinh Chauhan had said on August 8.
    India's biggest ever auction of telecom spectrum that concluded on August 1 received record bids worth Rs 1.5 lakh crore, with Mukesh Ambani's Jio cornering nearly half of all the airwaves sold with an Rs 88,078 crore bid.
    A total of 72 gigahertz (GHz) of 5G airwaves worth Rs 4.3 lakh crore were on offer with a validity period of 20 years in the auction which saw four participants - Reliance Jio, Adani Group, Bharti Airtel and Vodafone Idea.
    The government would levy a zero spectrum usage charge (SUC) on the spectrum acquired. The telecom operators are also not required to make an upfront payment. The dues can be paid in 20 equal instalments.
    Other telcos have also paid the DoT for the 5G spectrum:
    Airtel – Rs 8,312 crore
    Jio – Rs 7,864 crore
    Vi – Rs 1,679 crore
    The total payments received by the telecom department stand at Rs 17,855 crore.
     
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