Reliance Jio will pay ₹30,791 crore upfront and clear all spectrum dues | Techno Glob

NEW DELHI : Reliance Jio Infocomm Ltd, India’s largest prepaid telecom provider 30,791 crore to save interest costs on deferred spectrum liabilities to the government, clearing all payments made up to March last year.

Prepayment is assumed to bring around 1,200 crore in annual interest cost savings, Reliance Jio said in a statement on Wednesday. The obligations were payable annually from FY23 to FY35 and bore interest rates of 9.3% to 10% per annum, with an average residual period of more than seven years.

The deferred liabilities relate to 585.3 MHz units of spectrum purchased in auctions in 2014, 2015, 2016 and 2021 from rival Bharti Airtel Ltd.

“Following the Department of Telecom’s decision in December 2021 to give telcos flexibility to prepay their deferred spectrum liabilities on any date, Reliance Jio has now prepaid all deferred liabilities purchased in auctions in January 2022. In 2014 and 2015, the spectrum was also acquired through trading,” the statement said.

Jio made the first tranche of upfront payment for the spectrum purchased in the 2016 auction in October. He paid. 10.792 million to the government for the 269.2 MHz spectrum it purchased.

The Mukesh Ambani-led telecom provider is the only major telco not to opt for a four-year moratorium on spectrum and gross revenue payments, an option given by the government as part of a bailout package to help all operators. sector in September.

Last month Bharti Airtel prepaid 15,519 crore to the telecom division on deferred liabilities arising from the acquisition of 128.4 MHz spectrum, including Telenor’s airwaves, acquired in the 2014 auctions. 19,051 crore, which was paid from FY27 to FY32 at an interest rate of 10%. Prepayment saved the operator 3,400 million dollars, he said.

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