Reliance Jio prepays Rs 30,791 cr spectrum dues

The liabilities pertained to spectrum acquired by Reliance Jio Infocomm (RJIL) in 2014, 2015, 2016 auctions, and the spectrum acquired in 2021 through trading of right to use with Bharti Airtel.

Mukesh Ambani-led Reliance Industries (RIL)'s telecom arm RJIL has paid Rs 30,791 crore (including accrued interest) to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of year 2014, 2015, 2016 and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel. The company had acquired 585.3 MHz spectrum in the said auctions/trading.

"RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in auction in the year 2016. Subsequent to Department of Telecom's decision in the month of December 2021 providing the telcos the flexibility to prepay their deferred spectrum liabilities on any date, RJIL has now prepaid in the month of January 2022, the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as spectrum acquired through trading," Reliance Jio said in a release on Wednesday.

These liabilities were due in annual installments from FY 2022-23 to 2034-2035 and carried interest rate between 9.30% to 10% p.a. with an average residual period of 7+ years.

The company estimates that the above prepayments will result in interest cost savings of around Rs 1,200 crore annually, at the current interest rates.

Reliance Jio Infocomm, a subsidiary of Jio Platforms, has built an all-IP data strong future proof network with latest 4G LTE technology. It is the only network conceived and born as a Mobile Video Network from the ground up and supporting Voice over LTE technology. It is future ready and can be easily upgraded to support even more data, as technologies advance on to 5G, 6G and beyond.

Meanwhile, Reliance Jio added 2.01 million wireless customers in November last year, taking its gross mobile user base to 428.61 million, according to the latest subscriber data issued by Telecom Regulatory Authority of India (TRAI).

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.

On a consolidated basis, RIL reported 46% increase in net profit to Rs 15,479 crore on 50.7% rise in net sales to Rs 1,67,611 crore in Q2 September 2021 over Q2 September 2020.

The RIL scrip were up 0.11% at Rs 2523.60 on the BSE.

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