Airtel has opted for a four-year moratorium on the spectrum and adjusted gross revenue (AGR) payments, a move that analysts estimate would help the operator save Rs 110 billion to 115 billion in annual cash flow for network expansion and 5G spectrum purchases.
As per industry sources, Airtel had written to the Department of Telecommunications (DoT), a few days after Vodafone Idea (Vi) opted for a spectrum moratorium.
Earlier, DoT had written to Reliance Jio, Airtel, and Vodafone Idea giving them time till October 29, 2021, to decide whether they want to opt for a four-year moratorium on AGR and spectrum instalments. Operators also have 90 days to convert interest accrued due to deferred payments into government equity.
Besides the annual cash flow relief, Airtel expects to receive back from the DoT bank guarantees (BGs) worth around Rs 40 billion, which was taken to cover spectrum payments. These payments will not be made for another four years.
