Bharti Airtel sold spectrum of 7 1,497 crores to Reliance Jio

Bharti Airtel said on Tuesday that it has tied up with Reliance Jio Infocomm to transfer ‘right to use’ for some of the 800 MHz spectrum in three circles to the Mukesh Ambani-led firm.

After this agreement, Bharti Airtel will get an idea of ​​₹ 1,037.6 crore from Reliance Jio for the proposed transfer. In addition, Reliance will accept future liabilities of ores 459 crore related to Jio spectrum, Bharti Airtel said in a statement.

“The 800 MHz block sales in these three circles have enabled us to unlock value from spectrum that was unused. Bharti Airtel said that this is linked to our overall network strategy.

As per the agreement, which is subject to statutory approvals, Reliance Jio will exercise the right to spectrum for spectrum for Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz) spectrum.

In a separate statement, Reliance Jio said that it will now have 2X15MHz spectrum in the 800MHz band in Mumbai circle and 2X10MHz spectrum in the 800MHz band in Andhra Pradesh and Delhi circles, thereby strengthening the spectrum spectrum in these circles.

“The trade agreement is in accordance with the spectrum trading guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approval. The total value of the right to use this spectrum is ₹ 1,497 crore, which includes the present value of the associated deferred payment liability of ₹ 459 crore, subject to any transaction-related adjustment, ”said Reliance Jio.

Reliance Jio was the largest bidder in the recently held spectrum auction conducted by DoT, which received 488.35 MHz of spectrum for ₹ 57,122.65 crore. Majority of the auctions conducted by Reliance Jio will be for spectrum in the 800 MHz band (Rs 34,491 crore). Reliance Jio was followed by Bharti Airtel which bid 355.45 MHz spectrum for 45 18,698.75 crore.