Reliance Jio Infocomm has reportedly paid Rs 307.91 billion to the Department of Telecommunications (DoT) against the deferred spectrum liabilities for airwaves bought in auctions of year 2014, 2015, 2016 and 2021. The spectrum acquired in year 2021 include trading of right to use with Bharti Airtel Limited in 585.3 MHz spectrum.
The telco had recently made first tranche of spectrum payments in October 2021, for airwaves bought in 2016.
These payments have come in the backdrop of Department of Telecommunications’ (DoT) recent decision to provide the telcos some flexibility to prepay their deferred spectrum liabilities on any date.
With the payment being made, Reliance Jio has cleared entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as spectrum acquired through trading. These liabilities were due in annual instalments from FY’2022-23 to 2034-2035 and carried interest rate ranging between 9.30 – 10 per cent per annum, with an average residual period of 7 plus years.
As per industry estimates, the aforesaid prepayments will result in interest cost savings of around Rs 12 billion annually, at the current interest rates.
