It is happening for the first time that two rival operators: Reliance Jio Infocomm Ltd (RJIL) and Bharti Airtel Ltd have entered into a spectrum trading deal. RJIL has entered into a definitive agreement with Bharti Airtel Ltd for the purchase of the rights to use spectrum in the 800MHz band in Andhra Pradesh, Delhi, and Mumbai circles via spectrum trading.

 

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The overall value for the rights to use the spectrum is known to be ₹1,497 crores, which also includes the present value of associated deferred payment liability of ₹459 crores. Reliance Jio in a statement told that the agreement is under the spectrum trading guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approvals. Regarding this trading deal Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel spoke that the sale of the 800 MHz blocks in the three circles has enabled Bharti Airtel to unlock value from the spectrum which was not utilized and that this deal followed their overall network strategy.

Owning this trading rights to use spectrum, RJIL will now 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, further strengthening its spectrum footprint in these circles. With the now improved spectrum footprint, especially contiguous spectrum, and deployed superior infrastructure, RJIL has enhanced its network capacity even further.

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