Reliance Jio estimated it could save billions in annual interest payments by prepaying sums owed to India’s Department of Telecom for spectrum acquired in auctions up to March 2021.
In a stock market filing, Jio predicted it would save INR12 billion ($161.1 million) annually in interest payments by making a prepayment of INR307.9 billion.
The operator stated the payment covers all deferred liabilities including interest relating to spectrum acquired in auctions in 2014, 2015 and 2016, and purchases from Bharti Airtel in August 2021.
Jio’s spectrum fees were due in annual installments between fiscal years 2022 and 2035 with interest rates of between 9.3 per cent and 10 per cent, it stated.
DoT reforms gave operators the flexibility to prepay their deferred spectrum liabilities at any time.
Jio stated its current holdings total 585.3MHz.