Airtel and Jio conclude spectrum trading agreement
New Delhi, August 13, 2021
Telecom services provider Bharti Airtel today announced the closure of its agreement with Reliance Jio Infocomm to transfer the ‘Right to Use’ of Airtel’s 800 MHz spectrum in three circles to Jio.
Airtel has received Rs. 1004.8 crores (net of tax) from Jio for the proposed transfer, a press release from the company said.
In addition, Jio will assume future liabilities of Rs. 469.3 crore relating to the spectrum, the release added.
Separately, Reliance Jio said in a press release that the agreement was for the acquisitionof right to use spectrum in the 800MHz band in Andhra Pradesh (2 x 3.75 MHz), Delhi (2 x 1.25 MHz) and Mumbai (2 x 2.5 MHz) circles through spectrum trading, which has been taken on record by the Department of Telecommunication (DoT).
It said it had paid total consideration of Rs 1,183.3 crores (inclusive of taxes) to Bharti Airtel and had assumed deferred payment liability with net present value of Rs 469.3 crore.
"With this trading of right to use spectrum, RJIL will have 800 MHz band spectrum footprint of 2 x 15MHz in Mumbai circle and 2 x 10 MHz each in Andhra Pradesh and Delhi circles, thereby further enhancing network experience of its customers," the release added.
In April, Airtel had announced the agreement with Reliance Jio Infocomm to transfer the 'Right to Use' of Airtel's 800 MHz spectrum in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz) to Jio.
Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel, had said in April: "The sale of the 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."
The shares of Bharti Airtel on the BSE were trading at Rs 637.05, higher by Rs 13.80 or 2.21 per cent from its previous close.