Bharti Airtel has declared the completion of its agreement with Reliance Jio Infocomm to facilitate the ‘Right to Use’ of Airtel’s 800 MHz spectrum in three circles to the Mukesh Ambani-led telecom operator.
Jio has spent Rs 1004.8 crore to secure the spectrum mentioned above and take over its future liabilities amounting to Rs 469.3 crore.
Accordingly, Airtel’s spectrum in Mumbai (2.50 MHz), Delhi (1.25 MHz) and Andhra Pradesh (3.75 MHz) circles have been transferred to Reliance Jio Infocomm. However, this agreement remains subject to the necessary statutory approvals.
Perhaps as a reaction to this deal, Bharti Airtel’s shares touched the record high of 638.60 in the intra-day trade on Friday.
“Through this agreement, Airtel will 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,” Bharti Airtel confirmed the development in an official statement, as quoted by Livemint.
The telecom company’s MD and CEO (India and South Asia), Gopal Vittal, stated that this sale of 800 MHz blocks has allowed them to unlock the value of an unutilised spectrum, which remains aligned to its overall network strategy.