E-Paper
Airtel, Reliance Jio conclude spectrum trading agreement
In April, Jio had entered into a definitive agreement with Bharti Airtel for acquisition of ‘right to use’ spectrum in the 800MHz band in Andhra Pradesh, Delhi and Mumbai circles through spectrum trading.
Bharti Airtel on Friday announced the closure of its agreement with Reliance Jio Infocomm to transfer ‘right to use’ of Airtel’s 800 megahertz (MHz) spectrum in three circles to Jio.
Airtel has received ₹1,004.8 crore (net of tax) from Jio for the proposed transfer, the company said in a statement. In addition, Jio will assume future liabilities of ₹469.3 crore relating to the spectrum.
In April, Jio had entered into a definitive agreement with Bharti Airtel for acquisition of ‘right to use’ spectrum in the 800MHz band in Andhra Pradesh, Delhi and Mumbai circles through spectrum trading.
The agreement is in accordance with spectrum trading guidelines issued by the Department of Telecommunications.
With this trading of ‘right to use’ spectrum, Jio will have 2X15MHz of spectrum in the 800MHz band in Mumbai circle and 2X10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles, thereby further consolidating its spectrum footprint in these circles.
Shares of Bharti Airtel hit a new record high of ₹638.60, up 2.5% on the BSE in the intra-day trade on Friday after the announcement. The stock surpassed its previous high of ₹629.15, touched on Thursday, in the intra-day trade.
In the past one month, the stock of Bharti Airtel has outperformed the market by surging 20%, as compared to 4.8% rise in the BSE Sensex.
