April 7, 2021 5:05:01 am
Reliance Jio Infocomm on Tuesday said it had entered into a definitive agreement with its market rival Bharti Airtel to acquire some spectrum in the 800 MHz band in the Andhra Pradesh, Delhi, and Mumbai for an aggregate value of Rs 1,497 crore.
The spectrum trading agreement, which is the first such deal between the leading telcos, will help Reliance Jio expand its footprint in these three circles and augment its network capacity in these areas.
“The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approvals,” Reliance Jio said in a statement.
Of the total value of the deal, Bharti Airtel will receive Rs 1,037.6 crore from Reliance Jio for the proposed transfer, while Reliance Jio will assume future liabilities of Bharti Airtel, related to the spectrum, worth Rs 459 crore.
“The sale of the 800 MHz blocks in these three circles has enabled us to unlock value from the spectrum that was un-utilised. This is aligned to our overall network strategy,” said Gopal Vittal, Bharti Airtel’s managing director and chief executive officer for India and South Asia.
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