On September 30, Bharti Airtel, one of India’s largest telecom operators, announced the prepayment of ₹8,465 crore to the Department of Telecom (DoT), settling its deferred dues for spectrum acquired in 2016.
These liabilities, which carried an interest rate of 9.3%, have been fully repaid ahead of schedule, allowing Airtel to reduce its debt burden and optimize financial costs.
This is not Airtel’s first initiative to streamline its financial obligations. In June 2024, the company prepaid ₹7,904 crore, clearing all deferred liabilities from spectrum auctions held between 2012 and 2015, which carried even higher interest rates of 9.75% and 10%.
With these payments, Airtel has eliminated all outstanding spectrum liabilities from previous auctions, significantly lowering its interest expenses. Earlier in January 2024, the company also prepaid ₹8,325 crore to partially address its dues for airwaves acquired in the 2015 auction.
These strategic prepayments underscore Airtel’s commitment to improving its financial health by reducing high-interest debt. The move aligns with Airtel’s focus on enhancing its competitive position in the telecommunications sector, particularly as it expands its 5G services.
Bharti Airtel Ltd is one of the world’s leading providers of telecommunication services with a presence in 18 countries representing India, Sri Lanka, 14 countries in Africa.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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