Bharti Airtel sells spectrum worth Rs 1,497 crore to Reliance Jio

Reliance Jio Infocomm (Jio) on Tuesday stated it experienced signed a definitive arrangement with Bharti Airtel to receive the appropriate to use spectrum in the 800-megahertz (MHz) band in Andhra Pradesh, Delhi, and Mumbai circles by means of spectrum trading.

Jio will receive 3.75 MHz in Andhra Pradesh, one.twenty five MHz in Delhi, and two.five MHz in Mumbai. “The mixture value for the appropriate to use this spectrum is Rs one,497 crore, inclusive of current value of affiliated deferred payment liability of Rs 459 crore, subject matter to any transaction-related changes,” Jio stated in a statement.

The trading arrangement, it stated, is in accordance with the spectrum trading recommendations issued by the Department of Telecommunications and is subject matter to requisite regulatory and statutory approvals.

Gopal Vittal, taking care of director and chief executive officer, India and South Asia, Bharti Airtel, stated: “The sale of 800 MHz blocks in these a few circles has enabled us to unlock value from spectrum that was unutilised. This is aligned to our in general network method.”

Through this arrangement, Airtel will receive a consideration of Rs one,037.six crore from Jio for the proposed transfer. In addition, Jio will suppose long term liabilities of Rs 459 crore related to spectrum.

With this trading of appropriate to use spectrum, Jio will have 2×15 MHz of spectrum in the 800-MHz band in the Mumbai circle and 2×10 MHz of spectrum in the very same band in Andhra Pradesh and Delhi circles, therefore further more consolidating its spectrum footprint in these circles.

The enhanced spectrum footprint, specifically contiguous spectrum, along with superior infrastructure deployed by it, will further more maximize Jio’s network capacity, it stated. The transaction is subject matter to the requisite regulatory and statutory approvals. Previously in March, Jio experienced emerged the maximum bidder in the 4G spectrum auction carried out by the federal government, leaving driving Bharti Airtel and Vodafone Concept. The telco experienced acquired the appropriate to use spectrum in all 22 circles throughout India by getting spectrum in the 800-MHz, one,800-MHz, and two,300-MHz bands. Jio experienced acquired 488.35 MHz of airwaves for Rs 57,122.65 crore.

The Centre acquired Rs 77,815 crore from the two-day auction — a single of the shortest in a ten years. Even though the volume exceeded federal government anticipations, the total mop-up was significantly beneath the Rs 3.92 trillion well worth of airwaves place up for sale. Spectrum has been marketed throughout a couple preferred bands at the foundation price tag.

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