Reliance Jio Infocomm signs $200m spectrum trading deal with Bharti Airtel
Reliance Jio Infocomm (RJIL) has signed a spectrum trading deal with Bharti Airtel for acquiring the right to use spectrum in the 800MHz band in Andhra Pradesh, Mumbai, and Delhi circles for an amount of INR14.97 billion ($200 million).
The trading deal is in compliance with the spectrum trading guidelines defined by the Indian Department of Telecommunications, said the Reliance Industries’ subsidiary.
It will be subject to receipt of the relevant regulatory and statutory approvals.
The consideration for the use of the spectrum includes the current value of related deferred payment liablity of INR4.59 billion ($62 million), which will be contingent on any transaction related adjustments.
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 unutilized. This is aligned to our overall network strategy.”
Following the spectrum trading deal with Bharti Airtel, Reliance Jio Infocomm will boast of having 2X15MHz of spectrum in the 800MHz band in Mumbai along with 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles.
Reliance Jio Infocomm to acquire Bharti Airtel spectrum rights for $200m. Photo courtesy of Alberto Adán from Pixabay.
With the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, RJIL has further increased its network capacity.
Reliance Jio Infocomm, commenting on the spectrum trading deal, stated: “With the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, RJIL has further increased its network capacity.”
Recently, Bharti Airtel acquired 355.45 MHz spectrum across Sub GHz, mid band, and 2300 MHz bands for about $2.55 billion in the Spectrum Auction 2021 held by the Indian Department of Telecommunications.