Leading telecom operator Bharti Airtel announced on Friday that it has prepaid a substantial sum of Rs 7,904 crore to the Department of Telecom (DoT), covering the entire dues for spectrum acquired in the auctions held in 2012 and 2015.

In 2012, Airtel acquired spectrum worth Rs 8.67 crore, followed by a much larger purchase of Rs 29,129 crore worth of spectrum in the 2015 auction. The company has now fully settled all deferred liabilities related to these spectrum acquisitions, which were subject to high-interest costs of 9.75% and 10%, respectively.

“Bharti Airtel…said that it has prepaid Rs 7,904 crore to the Department of Telecom. With this, the company has fully prepaid all deferred liabilities pertaining to spectrum acquired in the auction of the year 2012 and 2015, which were at the highest interest cost of 9.75 and 10 per cent, respectively,” the company said in a statement.

This prepayment is part of Airtel’s strategic financial management aimed at reducing debt and associated interest costs. By settling these high-interest obligations, Airtel aims to strengthen its balance sheet and improve its financial flexibility.

The move reflects Airtel’s proactive approach to managing its finances and optimizing its capital structure in the competitive telecom sector. This development is likely to be viewed positively by investors and market analysts, who closely monitor the company’s debt levels and financial health.

Bharti Airtel’s decision to prepay these dues underscores its commitment to maintaining a strong financial position and its strategic focus on long-term growth and stability in the Indian telecom market.

Bharti Airtel is one of India’s leading telecommunications service providers, offering a diverse portfolio of services, including mobile voice and data, fixed-line broadband, and digital TV. The company is known for its extensive network and innovative solutions, catering to millions of customers across India and several other countries.