- 18 Aug 2022
- ICICIdirect Research
AIRTEL CLEARS 5G SPECTRUM INSTALLMENTS FOR FOUR YEARS UPFRONT
BHARTIARTL - 1600 Change: 15.60 (0.98 %)News: Airtel paid Rs 8,312.4 crore to the Department of Telecommunication (DoT), clearing installments for four years upfront. While Reliance Jio, Adani Data Networks and Vodafone Idea chose to pay in 20 equal annual installments, only Bharti Airtel has paid more upfront amount. Reliance Jio, has paid its first instalment of Rs 7,864 crore. Vodafone Idea has paid Rs 1,680 crore and Adani has paid the first installment of Rs 18.94 crore.
View: The upfront payment coupled with the moratorium on spectrum dues and AGR related payments for four years will free up future cash flows and allow Airtel to dedicate resources to concentrate on the 5G roll out. On liquidity options, Airtel also has access to Rs 15,740.5 crore in capital from the rights issue, which is yet to be called.
Impact: Neutral.