Airtel, Jio conclude spectrum trading agreement

The Department of Telecommunications (DoT) had on April 16 completed assigning spectrum to telecom operators who bought airwaves for 4G wireless service in the Spectrum Auction, 2021, conducted on March 1 and 2. (Source: Reuters)

Bharti Airtel, on August 13, announced the closure of the agreement with Reliance Jio to transfer the ‘Right to Use’ of Airtel’s 800 MHz spectrum in three circles to Jio.

"Airtel has received Rs. 1004.8 crores (net of tax) from Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs. 469.3 crores relating to the spectrum," Airtel said in a press release.

With this trading, Jio will have 2X15MHz of spectrum in the 800MHz band in the Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi, thereby further 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," Reliance Industries Limited had earlier said.

Bharti Airtel touched a 52-week high of Rs 638.60 and was quoting at Rs 634.05, up Rs 10.80, or 1.73 percent on the BSE.

The Department of Telecommunications (DoT) had on April 16 completed assigning spectrum to telecom operators who bought airwaves for 4G wireless service in the Spectrum Auction, 2021, conducted on March 1 and 2.

During the bidding, Reliance Jio emerged as the top bidder, which bought spectrum worth Rs 57,122.65 crore in the first spectrum auction in more than four years. Airtel purchased spectrum worth Rs 18,698.75 crore.