Wednesday, 7 April 2021
Reliance Jio Infocomm (Jio) on Tuesday said it had signed a definitive agreement with Bharti Airtel to acquire the right to use spectrum in the 800-megahertz (MHz) band in Andhra Pradesh, Delhi, and Mumbai circles through spectrum trading.
Jio will acquire 3.75 MHz in Andhra Pradesh, 1.25 MHz in Delhi, and 2.5 MHz in Mumbai. “The aggregate value for the right to use this spectrum is Rs 1,497 crore, inclusive of present value of associated deferred payment liability of Rs 459 crore, subject to any transaction-related adjustments,” Jio said in a statement.
The trading agreement, it said, is in accordance with the spectrum trading guidelines issued by the Department of Telecommunications and is subject to requisite regulatory and statutory approvals.
Gopal Vittal, managing director and chief executive officer, India and South Asia, Bharti Airtel, said: “The sale of 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.”
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 related to spectrum.