5G spectrum buy from Jio, Airtel credit neutral: Ind-Ra

NEW DELHI: The recently-concluded fifth generation or 5G auctions that offers a flexibility to telecom carriers to pay in 20 equal annual installments, is credit neutral for incumbents such as Reliance Jio and Bharti Airtel, the India Ratings and Research (Ind-Ra) Thursday said.

“The telcos have an option to defer the entire spectrum payment and pay in 20 annual equal installments, which would assuage the liquidity and capital requirement of telcos,” the rating firms said in a statement.

The agency believes both Reliance Jio and Bharti Airtel have the strong financial flexibility and adequate cash flow buffer to cover the annual spectrum liabilities and annual gross revenue dues.