Hindustan Times (Ranchi)

Bharti Airtel pays ₹8.3k cr ahead of schedule for 5G

- Gulveen Aulakh gulveen.aulakh@livemint.com

NEW DELHI: Bharti Airtel has paid up ₹8,312.4 crore to the telecom department as advance payment for spectrum bought in the recent auctions.

The payment amounts to four years of spectrum dues of the total ₹43,040 crore that the carrier must pay over 20 years, the term of the licence period.

This upfront payment coupled with the moratorium on spectrum dues and adjusted gross revenue (AGR)-related payments for four years will free up future cash flows and allow Airtel to dedicate resources to single-mindedly concentrat­e on the 5G roll out, the company said on Wednesday.

Over the last one year, Airtel has also cleared ₹24,333.70 crore of its deferred spectrum liabilitie­s much ahead of scheduled maturities.

“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 ₹15,740.50 crore in capital from the rights issue, which is yet to be called. 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,” said Gopal Vittal managing director and chief executive officer, Bharti Airtel Ltd.

Vittal said in an analyst call last week that the carrier will cover 5,000 towns and cities with 5G by March 2024 and will launch 5G services this month.

“By March 2024, we believe we will be able to cover every single town and key rural areas. A detailed network rollout plan

for 5,000 towns in India are in place. This will be one of the biggest rollouts in our history,” Vittal had told analysts and investors.

Airtel will front load its capital expenditur­e to prioritize 5G rollouts, which will get funded through internal cash flows. For FY22, Airtel’s total capital expenditur­e was ₹s25,661 crore, up from ₹24,168 crore in the previous year, he said.

“Our operating cash flows of the business are strong enough for us to fund any requiremen­t for capital expenditur­e,” Vittal said. The carrier’s operating cash flow for FY22 was ₹32,448 crore, up from ₹21,970 crore in the previous year.

Airtel will decide in the next couple of months on the timing of the second call for its rights issue, where ₹15,500 crore is pending, joint managing director Harjeet Kohli had said.

Airtel is yet to decide on the pricing of 5G tariff plans, Vittal said. However, he added that tariffs of existing plans needed to rise.

 ?? MINT ?? The payment made by Airtel amounts to four years of spectrum dues.
MINT The payment made by Airtel amounts to four years of spectrum dues.

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