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Airtel opts for 4-year AGR, spectrum moratorium

 

While Airtel has confirmed to the Department of Telecommunications (DoT) its acceptance of the moratorium, it has not reverted to the equity conversion option yet.

Synopsis

Vodafone Idea last week accepted the government’s offer of a four-year moratorium on spectrum payments, a move that analysts estimate may give the cash-strapped telco cash-flow relief of around Rs 60,000 crore.


Bharti Airtel has opted for the four-year moratorium on adjusted gross revenue (AGR) and spectrum payments, a person familiar with the matter told ET, becoming the second telco after Vodafone Idea who has opted to defer its spectrum payments so far.

Vodafone Idea last week accepted the government’s offer of a four-year moratorium on spectrum payments, a move that analysts estimate may give the cash-strapped telco cash-flow relief of around Rs 60,000 crore.

The person said that while Airtel has confirmed to the Department of Telecommunications (DoT) its acceptance of the moratorium, it has not reverted to the equity conversion option yet.

Airtel has previously said it was keen on the payments moratorium as well as the statutory dues to equity conversion. Bharti Airtel chief Sunil Mittal said the company will opt for the four-year moratorium on spectrum and AGR payments, which will help it conserve a cash outgo of Rs 35,000-40,000 crore that would be used for network and other capital expansion programmes.

DoT wrote to all three telcos recently, giving them till October 29 to respond on availing of the moratorium options. The DoT letter follows from a relief package announced by the government in the middle of September. It included the four-year moratorium on AGR and spectrum payments, sharply reduced BGs and the option to convert statutory dues to government equity.

Reliance Jio is yet to get back with its decision to the DoT.

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