Bharti Airtel today announced an agreement with Reliance Jio lnfocomm Ltd. (RJIL) to transfer the Right to Use spectrum of 800 MHz spectrum in Andhra Pradesh, Delhi and Mumbai through spectrum trading.
Through this agreement, Airtel will receive a consideration of Rs. 1,037.6 crore from Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs. 459 crore relating to the spectrum.
Circle wise details of the traded spectrum:
Andhra Pradesh – 3.75 MHz
Delhi – 1.25 MHz
Mumbai – 2.50 MHz
Gopal Vittal, MD & 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 spectrum that was unutilised. This is aligned to our overall network strategy.”
The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications (DoT) and is subject to the requisite regulatory and statutory approvals.
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. With the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, RJIL has further increased its network capacity.