Telecom service provider Bharti Airtel’s share price rose on Thursday after the company paid an upfront payment to buy 5G spectrum. Bharti Airtel’s share price rose 1.59 percent to Rs. Closed up. 733.25 on BSE on Thursday. The scrip hit a high. 735.70 in intra-day.
Bharti Airtel’s share price has gained 4.5 percent in the last two trading sessions.
The company’s shares rose sharply after paying upfront for 5G spectrum. Bharti Airtel on Wednesday said that it has Rs. 8,312.4 crore to the Department of Telecom (Government of India) for the amount due for spectrum acquired in the recently concluded 5G auction.
Airtel has prepaid spectrum payments for 4 years from 2022. The company believes that this advance payment, along with the moratorium on spectrum arrears and AGR related payments, will free up future cash flows and allow Airtel to devote resources to concentrate on the 5G rollout.
In the last year, Airtel also spent Rs. 24,333.7 crore of its deferred spectrum liabilities are well ahead of schedule maturity.
The government announced that spectrum has been allotted to telecom operators within hours of payment.
Sunil Bharti Mittal, chairman of Bharti Enterprises, praised the government for speedy allocation of 5G spectrum. “No fuss, no follow-up, no running in corridors and no big claims. It’s easy to do business in its full glory. In my more than 30 years of experience in the Department of Telecom (Department of Telecom). This is a first! Business as it should be,” Mittal said in a The statement said.
