Reliance Jio Infocomm Ltd (Jio) on Tuesday said it has signed a definitive agreement with Bharti Airtel Ltd to acquire the right to use spectrum in 800 MHz band in Andhra Pradesh, Delhi and Mumbai circles through spectrum trading.
Jio will acquire 3.75 MHz in Andhra Pradesh, 1.25 MHz in Delhi and 2.50 MHz in Mumbai. "The aggregate value for the right to use this spectrum is Rs 1,497 crore, inclusive of present value of associated deferred payment liability of Rs 459 crore, subject to any transaction related adjustments," Jio said in a release.
The trading agreement, it said, is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approvals.
With this trading of right to use spectrum, Jio will have 2X15MHz of spectrum in 800 MHz band in Mumbai circle and 2X10MHz of spectrum in the same band in Andhra Pradesh and Delhi circles, thereby further consolidating its spectrum footprint in these circles.
The enhanced spectrum footprint, especially contiguous spectrum, along with superior infrastructure deployed by it, will further increase Jio's network capacity, it said.
Earlier in March, Jio had emerged as the biggest buyer in spectrum auction conducted by the government. The telco had acquired the right to use spectrum in all 22 circles across India by acquiring spectrum in 800 MHz, 1,800 MHz and 2,300 MHz bands. Jio had acquired 488.35 MHz of airwaves for Rs 57,122.65 crore.