Bharti Airtel has paid Rs 8312.4 crore to the Department of Telecom towards dues for spectrum acquired in the recently concluded 5G auctions. With this payment, Sunil Bharti-led Bharti Airtel has paid four years of 2022 spectrum dues upfront. “This upfront payment coupled with the moratorium on spectrum dues and adjusted gross revenue (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,” the company said on Wednesday.
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Over the last one year, Bharti Airtel has also cleared Rs 24,333.7 crore of its deferred spectrum liabilities much ahead of scheduled maturities. Bharti Airtel MD and CEO Gopal Vittal, in a statement, said that this upfront payment of 4 years allows the company to drive 5G rollout in a concerted manner given Airtel’s operating free cash flow. Bharti Airtel also has access to Rs 15,740.5 crore 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,” Bharti Airtel MD and CEO Gopal Vittal said in the statement. The company had an option to pay Rs 3,848.88 crore upfront and the rest in 19 annual instalments.
Earlier this month, India’s biggest ever auction of telecom spectrum received a record Rs 1.5 lakh crore of bids, with billionaire Mukesh Ambani’s Reliance Jio cornering nearly half of all the airwaves sold with an Rs 88,078 crore bid. Airtel acquired 19,800 MHz spectrum by securing a pan India footprint of 3.5 GHz and 26 GHz bands. This was secured for a total consideration of Rs 43,084 crore in the latest spectrum auction conducted by the Department of Telecom. Airtel is also planning to launch 5G services in every part of the country starting with key cities.
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Last week, Bharti Airtel reported a 22.2 per cent increase in quarterly revenue, boosted by 4G subscriber additions and higher data consumption. Average revenue per user (ARPU) – a key performance indicator in the telecom industry – came in at Rs 183 for the quarter, up from Rs 146 from a year earlier. ARPU of rivals Reliance Jio and Vodafone Idea for the same period was Rs 175.7 and Rs 128, respectively.