Mukesh Ambani’s Reliance Jio joins hands with Bharti Airtel; acquires 800MHz spectrum in 3 circles – The Financial Express

With this trading of the right to use spectrum, Reliance Jio will have 2X15MHz of spectrum in the 800MHz band in Mumbai. Image: ReutersMukesh Ambani-led RIL’s telecom subsidiary Reliance Jio has signed a definitive agreement with Bharti Airtel for the acquisition of right to use spectrum in the 800MHz band in three circles through spectrum trading. The transferred spectrum comprises those in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz). With this trading of the right to use spectrum, Reliance Jio will have 2X15MHz of spectrum in the 800MHz band in Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles. The aggregate value for the right to use this spectrum is Rs 1,497 crore.Through this agreement, Sunil Mittal’s Airtel will receive a consideration of Rs 1,037.6 crore from Reliance Jio for the proposed transfer. Moreover, Reliance Industries’ subsidiary, Jio, will assume future liabilities of Rs 459 crore relating to the spectrum. “The sale of the 800 MHz blocks in these three circles has enabled us to unlock value from the spectrum that was utilised. This is aligned to our overall network strategy,” said Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel.Related NewsReliance Jio has increased its network capacity with the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed. It may be noted that this agreement is subject to statutory approvals. Reliance Jio is the only network that has been conceived as a Mobile Video Network from the ground up and supporting Voice over LTE technology.Last month, auctions were held where Mukesh Ambani’s Reliance Jio spent the most, and picked up 488.35 MHz spectrum in bands such as 800 MHz, 1800 MHz and 2300 MHz for over Rs 57,100 crore. While Sunil Mittal-led Bharti Airtel won the right to use spectrum, the total value of which was about Rs 18,700 crore. For Vodafone Idea, the value of spectrum bought in auctions was pegged at Rs 1,993.4 crore.Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.