Bharti Airtel today announced that it has signed agreement with Reliance Jio to transfer the ‘Right to Use’ of its 800 MHz spectrum in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz) to Jio. With this, Jio will have 2 x 15MHz spectrum in the 800MHz band in Mumbai circle and 2 x 10MHz of spectrum in the 800MHz band in Andhra Pradesh and Delhi circles, respectively.
The aggregate value for the right to use this spectrum is Rs 1,497 crore Airtel said that it receive a consideration of Rs 1037.6 crores from Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs 459 crores relating to the spectrum.
Airtel said that the agreement is subject to statutory approvals.
Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel said:
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.