Bharti Airtel announced that it has fully prepaid its deferred spectrum liabilities of Rs 7,904 crore to the Department of Telecommunications (DoT). This payment means Airtel, the second-largest telecom operator in India, has now fully prepaid all deferred liabilities related to spectrum acquired in the 2012 and 2015 auctions, which carried the highest interest rates of 9.75% and 10%, respectively, according to a late-night company statement. Previously, Airtel had prepaid Rs 8,325 crore in January 2024. These deferred liabilities were part of a four-year moratorium provided by the government in September 2021 as part of a relief package for telecom companies.
This development occurs just ahead of the highly anticipated 5G spectrum auction scheduled for June 25. The auction will include 5G airwaves in eight bands—the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3.3 GHz, and 26 GHz bands—valued at over Rs 96,000 crore at base prices. Analysts expect the upcoming auction to be relatively low-key, with muted bidding, as Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) already have sufficient 5G spectrum. Airtel and Vodafone Idea are expected to focus on specific bands in markets where they need spectrum renewals.
