Airtel prepays Rs 8,815 crore to clear spectrum liabilities

Bharti Airtel, India’s second largest telecom operator, has paid Rs 8,815 crore to the Department of Telecom (Government of India) towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015. The prepayment is for installments due in FY 2027 and FY 2028.

Over the last four months, Airtel has cleared Rs 24,334 crore of its deferred spectrum liabilities much ahead of scheduled maturities. These liabilities carried an interest rate of 10 percent and have been paid off through a combination of free cash generated by business, equity proceeds and lower cost of debt, Airtel said in a news statement.