Bharti Airtel makes prepayment of Rs 8,465 crore to DoT

Airtel pays DoT: The latest prepayment of Rs 8,465 crore is among the biggest ever for Bharti Airtel and is being made to the Department of Telecommunications as a part of settling the high-cost deferred liabilities related to the spectrum acquired in 2016, which carried an interest rate of 9.3 per cent. The company aims at a lean balance sheet with lower interest expenses going forward.

This upfront payment will allow Airtel to focus more on improving its services and enhancing its network capabilities; thereby, it will reinforce its position as a market leader in the telecom sector. The company has over 550 million customers in 17 countries in South Asia and Africa, and they still heavily invest in their 4G/5G networks, fiber broadband, and enterprise services.

Bharti Airtel prepaid another Rs 7,904 crore in June to pay all dues over the spectrum bought in 2012 and 2015. The company had initially bought spectrum worth Rs 8,670 crore in 2012 and Rs 29,129 crore in the 2015 auction with interest rates at 9.75 per cent and 10 per cent respectively. Airtel has set all unpaid liabilities arising out of those two purchases at zero, hence showing that it was serious about shedding all financial burdens and improving efficiency.