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Bharti Airtel (Airtel) on Friday said that it has paid ₹15,519 crore to the Department of Telecommunications (DoT) towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auction of 2014.
The company had acquired 128.4 MHz spectrum (including Telenor spectrum) for a consideration of ₹19,051 crore in the 2014 auction.
These liabilities were due in annual instalments from fiscal year (FY) 2026-2027 to 2031-2032 and carried an interest rate of 10 per cent (the highest rate amongst the deferred liabilities and borrowings) and an average residual life of 7+ years, the company said in a statement.
The company estimates that the prepayment will likely result in interest cost savings of at least ₹3,400 crore over the residual life for fully substituted capital, it said.
“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 the interest rates specified for the respective auction. This allows the licensees to efficiently plan and use their cash flows,” it added.
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