Jio pays INR308bn towards deferred spectrum dues

Indian full-service provider Reliance Jio Infocomm (Jio) has paid INR307.9 billion (USD4.1 billion) towards deferred spectrum liabilities for airwaves purchased at tenders in 2014, 2015 and 2016 and acquired through trading in 2021, the Economic Times reports. The move follows the Department of Telecommunications’ (DoT’s) decision in December 2021 to allow providers flexibility to pay deferred spectrum dues at any date. The payment comprises the entirety of the deferred liabilities for spectrum secured at auctions in 2014 and 2015 as well as the frequencies it purchased from Bharti Airtel last year. Payments for the airwaves were due in annual instalments between the 2022/23 and 2034/35 financial years with interest rates of around 10% and with an average residual rate period of around seven years. According to Jio, early payment of the spectrum dues will result in interest cost savings of around INR12 billion annually.