Telecommunications company Bharti Airtel on Friday announced the closure of its spectrum trading agreement with Reliance Jio Infocomm (Jio) to transfer the ‘Right to Use’ of Airtel’s 800 MHz spectrum in three circles to Jio.
Airtel said that the company has received ₹1,004.8 crore (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, it said in the exchange filing.
In April, Airtel had announced a spectrum trading agreement with Reliance Jio. The company entered an agreement with Reliance Industries' telecom subsidiary Jio to transfer the ‘Right to Use’ of Airtel’s 800 MHz spectrum in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz) to Jio. The agreement was subject to statutory approvals.
“Through this agreement, Airtel will receive a consideration of ₹1037.6 crores from Jio for the proposed transfer. In addition, Jio will assume future liabilities of ₹459 crores relating to the spectrum,'' the Sunil Mittal-led telco had announced in a release on April 6.
“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,'' Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel had said in the statement.
Shares of Bharti Airtel were trading more than 2% higher at ₹636 per share in Friday's afternoon deals on the BSE.
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Airtel announces closure of spectrum trading agreement with Jio, gets ₹1,005 crore - Mint
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