Mumbai: Reliance Jio, the telecom subsidiary of Mukesh Ambani-led Reliance Industries, 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. Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz), and Mumbai (3.75 MHz) are among the states whose spectrum has been shifted (2.50 MHz). Reliance Jio will have 2X15MHz of spectrum in the 800MHz band in the Mumbai circle and 2X10MHz of spectrum in the 800MHz band in the Andhra Pradesh and Delhi circles as a result of this spectrum trading. The right to use this spectrum is worth Rs 1,497 crore in total.
Reliance Jio will pay Sunil Mittal’s Airtel Rs 1,037.6 crore for the planned move under the terms of this agreement. Jio, a subsidiary of Reliance Industries, will also assume potential spectrum liabilities worth Rs 459 crore. “We were able to unlock value from the spectrum that was used by selling the 800 MHz blocks in these three circles. This is in line with Bharti Airtel’s overall network plan, according to Gopal Vittal, MD & CEO (India and South Asia).
With improved spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, Reliance Jio has increased its network capacity. This agreement is subject to regulatory approvals, which should be noted. Reliance Jio is the first network that was designed from the ground up to be a Mobile Video Network and supports Voice over LTE technology.
Last month, auctions were held in which Mukesh Ambani’s Reliance Jio invested the most, paying over Rs 57,100 crore for 488.35 MHz spectrum in bands such as 800 MHz, 1800 MHz, and 2300 MHz. Bharti Airtel, led by Sunil Mittal, won the right to use spectrum worth approximately Rs 18,700 crore.
The value of spectrum purchased in auctions for Vodafone Idea was estimated to be Rs 1,993.4 crore.