Bharti Airtel has introduced an agreement with Reliance Jio Infocomm to switch 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. The agreement is topic to statutory approvals, Airtel stated in an announcement.
Through this agreement, Airtel will obtain a consideration of Rs 1,037.6 crore from Jio for the proposed switch. In addition, Jio will assume future liabilities of Rs 459 crore regarding the spectrum.
Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel stated: “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.”
In an announcement, Jio stated that the trading agreement is in accordance with the spectrum trading tips issued by the Department of Telecommunications.
It stated that with this improvement, Reliance Jio could have ‘2X15MHz’ of spectrum within the 800MHz band in Mumbai circle and ‘2X10MHz’ of spectrum within the 800MHz band in Andhra Pradesh and Delhi circles, thereby additional consolidating its spectrum footprint in these circles.
“With the enhanced spectrum footprint, especially contiguous spectrum, and superior infrastructure deployed, RJIL has further increased its network capacity,” Jio stated.
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