Bharti Airtel and Reliance Jio signed an agreement on Tuesday wherein the former will transfer spectrum in 800 MHz band in Andhra Pradesh, Delhi and Mumbai circles to Jio for Rs 1037.6 crore, according to the statements by the two telecom companies.
Through this agreement, Bharti Airtel will receive a consideration of Rs 1037.6 crores from Reliance Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs 459 crores relating to the spectrum, a statement by Bharti Airtel said.
The spectrum transfer comprises 800 MHz band in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz).
The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications (DoT) and is subject to the requisite regulatory and statutory approvals, a statement from Reliance Industries 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,” Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel said in the company statement.
The aggregate value for the right to use this spectrum is Rs 1,497 crore, inclusive of the present value of associated deferred payment liability of Rs 459 crore, subject to any transaction-related adjustments.
With this trading of right to use spectrum, Jio will have 2X15MHz of spectrum in the 800MHz band in Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles, thereby further consolidating its spectrum footprint in these circles, the Mukesh Ambani-led telco said.