Reliance Jio buys Bharti Airtel’s spectrum worth Rs 1,497 crore
Mukesh Ambani-backed Reliance Jio acquires Bharti Airtel's spectrum for a whopping price of Rs 1,497 crores. Jio to acquire 3.75 MHz in Andhra Pradesh, 1.25 MHz in Delhi, and 2.5 MHz in Mumbai respectively
Mukesh Ambani owned Reliance Jio Infocomm has acquired Bharti Airtel’s spectrum on Tuesday i.e April 6. The company has apparently signed a definitive agreement with Airtel to acquire the rights to use its spectrum in the 800-megahertz (MHz) band in three major city circles respectively. Jio will acquire 3.75 MHz in Andhra Pradesh, 1.25 MHz in Delhi, and 2.5 MHz in Mumbai.
This trading agreement is said to be according to the spectrum trading guidelines issued by the Department of Telecommunications India. As per the media reports, Gopal Vittal (the managing director and chief executive officer India and South Asia, Bharti Airtel) said while talking about this deal, “The sale of 800 MHz blocks in these three circles has enabled us to unlock value from the spectrum that was unutilized. This is aligned to our overall network strategy.”
On the other side Reliance Jio said in a 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.” After acquiring the spectrum Jio will enhance its network capacity.
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