Airtel acquired 5G spectrum worth Rs. 43,084 crore in the 5G auction a few weeks back, and the company said that its 5G deployment will start in August 2022. Today, Airtel said that it has paid Rs 8312.4 crores to the Department of Telecom (Government of India) towards dues for spectrum acquired in the recently concluded 5G auctions.
The company said that it has paid 4 years of 2022 spectrum dues upfront, and added that it believes that the 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 roll out.
Airtel added that it has also cleared Rs 24,333.7 crores of its deferred spectrum liabilities over the last one year, much ahead of scheduled maturities.
Speaking about the pre-payment of dues, Gopal Vittal, MD & CEO, Bharti Airtel Ltd. said,
This upfront payment of 4 years allows us to drive 5G rollout in a concerted manner given our operating free cash flow. Airtel also has access to Rs 15,740.5 Cr 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 to the country a world class 5G experience.