Top 5G Spectrum Payout Goes To Airtel

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Top 5G Spectrum Payout Goes To Airtel
18 Aug 2022
6 min read

News Synopsis

The largest upfront payment for the 5G spectrum was made by Bharti Airtel, totaling Rs 8,312.4 crore, or four annual installments. The other companies were limited to making a single installment. According to sources, Reliance Jio paid its initial installment of Rs 7,864 crore, Adani Data Networks received Rs 18,94 crore, and Vodafone received Rs 1,679 crore. With this, the 5G bidders have given the Department Of Telecom a total payment of Rs 17,874 crore. Other companies including Airtel have not formally acknowledged the payment.

The upfront payment, along with the four-year suspension on payments linked to AGR (Adjusted Gross Revenue) and spectrum dues, according to Airtel, will free up future cash flows and enable the business to devote resources and concentrate solely on the 5G deployment.

“This upfront payment of four years allows us to drive 5G rollout in a concerted manner given our operating free cash flow. Airtel also has access to Rs 15,740.5 crore in capital from the rights issue, which is yet to be called.”

Bharti Airtel MD and CEO Gopal Vittal said, “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,”

The business had the option of paying Rs 3,848.88 crore up front and the remaining sum over 19 years. According to Airtel, it has paid down Rs 24,333.7 crore of its outstanding delayed spectrum debt during the past year, far in advance of when it was due.

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