Airtel prepays deferred spectrum liabilities partly
News: Bharti Airtel has paid Rs 15,519 crore to the Department of Telecom towards prepayment of entire deferred liabilities pertaining to spectrum acquired in auction of 2014. The company had acquired 128.4 MHz spectrum (including Telenor spectrum) for a consideration of Rs 19,051 crore in the 2014 auction.
View: These liabilities were due in annual instalments from FY27 to FY32 and carried an interest rate of 10% (the highest rate among deferred liabilities and borrowings) and an average residual life of 7+ years. The company has estimated that the prepayment will likely result in interest cost savings of at least | 3,400 crores over the residual life (of seven years) for fully substituted capital