Bharti Airtel, one of India’s telecom companies has recently made a payment of Rs. 8,024 crore, to the Department of Telecommunications. This payment successfully clears a portion of the dues associated with the acquisition of Airwaves during the auction held in 2015. The company’s objective behind this move is to reduce interest expenses enhance cash flow and provide support, for the implementation of their 5G network.
Bharti Airtel, the telecommunications company, in India, has taken a significant step by paying off Rs. 8,024 crore to the Department of Telecommunications (DoT). This payment effectively settles the amount for the airwaves it acquired during the auction in 2015.
This move is expected to bring advantages for the company. Firstly it will help Bharti Airtel save on interest expenses annually. Additionally, this prepayment will bolster the company’s cash flow. These financial benefits come at a time when Bharti Airtel is actively deploying 5G networks and aims to provide mobile broadband services across the country by December.
In a statement issued on Monday Sunil Mittal-led Bharti Airtel confirmed that they have cleared their deferred liabilities related to spectrum acquisition in 2015. The installments were subject to a 10% interest rate; however, the company managed to secure financing at costs for this prepayment.
It’s important to note that Bharti Airtel continues to have access to sources of capital and financing options. This provides them with flexibility in their overall capital structure. Furthermore, the company is actively exploring opportunities, for interest savings as evidenced by this prepayment.
