Bharti Airtel`s deal with Reliance Jio Infocomm involves the transfer of Airtel`s 800 MHz spectrum “right of use” in Andhra Pradesh (3.75 MHz), Delhi (1.25 MHz) and Mumbai (2.50 MHz) to Jio, the companies said earlier this year. Indian telecommunications company Bharti Airtel announced on August 13 that it had reached an agreement to transfer the “right to use” its 800 megahertz spectrum in three circles to Reliance Jio Infocomm. Bharti Airtel announced on Friday that it has reached an agreement with Reliance Jio Infocomm to transfer the “right of use” of Airtel`s 800 megahertz (MHz) spectrum to Jio in three circles. With this “right of use” spectrum trade, Jio will have a spectrum of 2X15 MHz in the 800 MHz band in the Mumbai circle and 2 X10 MHz in the 800 MHz band in Andhra Pradesh and Delhi counties, further consolidating its presence in these circles. In addition, Jio will assume future liabilities of Rs 469.3 crore relative to spectrum, the statement added. “The sale of the 800 MHz blocks in these three circles allowed us to add value from the unused spectrum. This is in line with our overall network strategy,” Gopal Vittal, MD and CEO (India and South Asia), Bharti Airtel said in the statement. “The total value of the right to use this spectrum is INR 1,497 crore ($201.58 million), including the present value of INR`s associated deferred payment obligation of CRO 459 crore ($61.8 million), subject to transactional adjustments,” Reliance Jio Infocomm said in a statement at the time of the agreement. Reliance Jio Infocomm`s frequency sharing pact with another telecommunications company operated by Mukesh Ambani`s younger brother, Anil Ambani, Reliance Communications, expired in July 2021 (Anil Ambani`s telecommunications company has since been shut down). In April, Jio reached a definitive agreement with Bharti Airtel to acquire “rights of use” on the 800 MHz band in Andhra Pradesh, Delhi and Mumbai counties through spectrum trade. The agreement is in line with the spectrum trade guidelines issued by the Ministry of Telecommunications.
Shares of Bharti Airtel were trading up more than 2% on ESB on Friday afternoon at ₹636 per share. “Through this agreement, Airtel will receive from Jio a consideration of CRO 1037.6 crore for the proposed transfer. In addition, Jio will assume future liabilities of 459 crores equal to spectrum,” the Sunil Mittal-led telecommunications provider announced in a press release on April 6. In April, Airtel announced a spectrum trade deal with Reliance Jio. The company has entered into an agreement with Jio, the telecommunications subsidiary of Reliance Industries, to transfer the “right of 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 legal approval. In addition, Reliance Jio Infocomm will assume future liabilities of INR 469.3 billion (USD 63.1 million) related to spectrum. During the tender, Reliance Jio emerged as the highest bidder, buying Spectrum worth Rs 57,122.65 crore at the first spectrum auction in more than four years.
Airtel bought Spectrum for a value of Rs 18,698.75 crore. “With the expanded spectrum footprint, especially interconnected spectrum, and superior infrastructure, RJIL has further increased its network capacity,” Reliance Industries Limited had previously said. Airtel received 1,004.8 billion euros (after tax) from Jio for the proposed transfer, the company said in a statement. In addition, Jio will assume future liabilities of ₹469.3 billion with respect to spectrum. The Ministry of Telecommunications (DoT) had completed on April 16 the allocation of frequencies to telecommunications operators, radio waves for 4G wireless service in the spectrum auction, 2021, which took place on March 1 and 2. India`s richest man, Mukesh Ambani, entered the telecommunications field with Reliance Jio Infocomm in September 2016 after testing his 4G services with a limited number of employees of the group company since December 2015. . Bharti Airtel hit a 52-week high of Rs 638.60 and was listed at Rs 634.05, up Rs 10.80 or 1.73% on BSE. Headquartered in India, Airtel is a global telecommunications company operating in 18 countries in South Asia and Africa. The company is one of the top three mobile operators in the world and its mobile network covers a population of more than two billion people… Note: The subscription will be automatically renewed, you can cancel at any time in the future without asking any questions. Bharti Airtel received 1,004.8 crore ($135.3 million) [after tax] from Reliance Jio Infocomm for the proposed transfer, according to a statement.
Topics Bharti Airtel | | Reliance Jio buzzing shares “This is in line with our overall network strategy.” Bharti Airtel said in a statement that the company received Rs 1,004.8 crore (less taxes) from Jio for the proposed transfer. In addition, Jio will assume the future responsibilities of Rs. Airtel said it received Rs 1,004.8 crore (less taxes) from Jio for the proposed transfer. . Important articles on business-standard.com are only available to premium subscribers. deepak Korgaonkar | Mumbai Last updated on August 13, 2021 14:01 Bharti Airtel shares hit a new record high of ₹638.60 on Friday after the announcement, up 2.5% on BSE in intraday trading. The stock surpassed its previous high of ₹629.15, which had been hit in intraday trading on Thursday. Over the past month, Bharti Airtel`s stock has outperformed the market by 20%, compared to a 4.8% increase in BSE Sensex. .
Easy | how 2021 has affected your personal finances Never miss a story! Stay connected and up-to-date with Mint. Download our app now!! As a result, Reliance Jio offered Infocomm the highest offering in the 800 megahertz band this year to renew its license and keep its 4G services active in 18 circles… After the official launch, Reliance Jio Infocomm offered the cheapest rates for 4G services, forcing Bharti Airtel and Vodafone to lower their prices. Vodafone India had to announce a merger with Idea Cellular (owned by Aditya Birla Group). The merger was approved in 2018 and has since been called Vodafone Idea. . Business Standard has always strived to provide up-to-date information and feedback on developments that are of interest to you and that have far-reaching political and economic implications for the country and the world. Your constant encouragement and feedback on how we can improve our offering has only strengthened our determination and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed with credible news, authoritative views and concise comments on relevant current issues.
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