Airtel sells spectrum to Reliance Jio worth INR 1,497 crore
By Sanjay Kumar
News Highlights
- Bharti Airtel agreed with Reliance Jio to offer the consideration of INR 1,037.6 crores to airtel for the proposed transfer.
- The overall value for the option to use this spectrum is INR 1,497 crores.
- Bharti Airtel Managing Director said that the sale of 800 MHz blocks in these 3 circles has empowered us to open value from the unutilized spectrum.
Bharti Airtel sells spectrum to Reliance Jio
On Tuesday, Bharti Airtel said, we have signed an agreement with Reliance Jio to transfer ‘Right to Use’ for a portion of its 800 MHz spectrum in 3 circles to the Reliance led firm. Through sells agreement of Spectrum with Reliance Jio, Airtel will get the consideration of INR 1,037.6 crores for the proposed transfer.
Additionally, Reliance Jio will expect future liabilities of INR 459 crores relating to the spectrum, Bharti Airtel said.
The managing director and chief executive officer Gopal Vittal, Bharti Airtel, said: “The sale of 800 MHz blocks in these 3 circles has empowered us to open value from the unutilized spectrum. This is aligned to our overall network system.”
Based on the agreement, Reliance Jio will get the option to utilize spectrum in the 800MHz band in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz), and Mumbai (2.50 MHz) circles through spectrum trading.
Dependence Jio mention in the statement that the firm will have 2X15MHz of spectrum in the 800MHz band in the Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Delhi and Andhra Pradesh circles, accordingly further consolidating its spectrum impression in these circles.
“The trade pact is by the Policies on Spectrum Trading which is issued by the Department of Telecommunications and it’s subject to the requisite regulatory & statutory approvals,” Reliance said.
The overall value for the option to use this spectrum is INR 1,497 crores, inclusive of the present value of associated deferred payment liability of INR 459 crores, subject to any transaction related adjustments,”
In the recently held spectrum auction by the Department of Telecom shows us Reliance Jio was the biggest bidder, received 488.35 MHz of spectrum for INR 57,122.65 crores. The preponderance of auction payoff by the Reliance Jio will be for the spectrum in the 800 MHz bands about INR 34,491 crore.
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