Bharti Airtel Confirms Accepting 4-Year Moratorium On Spectrum

Investment

oi-Sneha Kulkarni

By Sneha Kulkarni

Published: Monday, October 25, 2021, 18:27 [IST]

Bharti Airtel has notified the government that it will opt for a four-year payment freeze on AGR and spectrum dues, according to BSE Notification. As part of a recently announced rescue package for the telecom sector, the government granted telecoms the option of a dues moratorium.

Vodafone Idea has previously announced that its board of directors had decided to postpone AGR payments from October 2021 to September 2025.

It's the first operator to take a portion of the recently announced telecom relief package from the Department of Telecom.

:We wish to inform you that the Company has confirmed to avail the following options: a) deferment of the payment of spectrum auction instalments due upto four years; and b) deferment of AGR related dues by a period of four years with immediate effect. The other option offered in the aforesaid notification by DoT shall be considered by the Company within the stipulated timelines," the company said in the BSE notification.

Sunil Mittal, chairman of Airtel, announced last month that the business would opt for a payment moratorium and redirect cashflow to rapidly construct networks.

As part of a recently announced rescue package for the telecom sector, the government granted telecoms the option of a dues moratorium.

The Department of Telecom (DoT) has also allowed operators 90 days to decide if they wish to convert the income earned during the moratorium period into equity.