Reliance Jio Infocomm Ltd (RJIL) has entered an agreement with Bharti Airtel Ltd in order to acquire the right to use spectrum in the 800MHz band in tthe regions of Andhra Pradesh, Delhi and Mumbai circles with the help of spectrum trading. The new agreement will help Jio increase its spectrum footprint in few of the most populous areas in the country. However, the agreement is subject to the requisite regulatory and statutory approvals.
The aggregate value has been set at ₹1,497 crore. The total amount will also include the present value of future liabilities worth ₹459 crore which will also be subject to any transaction-related adjustments. Currently, Airtel will receive a consideration of ₹1,037.6 crore from Jio for the proposed transfer
The companies have assured that the new agreement has been made in accordance with spectrum trading guidelines issued by the Department of Telecommunications.
“Bharti Airtel today announced an agreement with Reliance Jio Infocomm to transfer the ‘Right to Use’ of Airtel’s 800 MHz spectrum in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz) to Jio,” Airtel said.
Gopal Vittal, MD and CEO (India and South Asia), Bharti Airtel, said: “The sale of the 800 MHz blocks in these three circles has enabled us to unlock value from the spectrum that was unutilised. This is aligned to our overall network strategy”.
Jio has claimed that with the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, RJIL has further increased its network capacity.
“With this trading of right to use spectrum, RJIL will have 2X15 MHz of spectrum in the 800 MHz band in Mumbai circle and 2X10 MHz of spectrum in the 800 MHz band in Andhra Pradesh and Delhi circles, thereby further consolidating its spectrum footprint in these circles,” Jio added.
With inputs from Agencies