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. The agreement states that Reliance Jio has now taken control of Bharti Airtel`s spectrum in Andhra Pradesh, Delhi and Mumbai for a total value of Rs 1,497 crore. Jio now holds 10 MHz, 10 MHz and 15 MHz, each in these circles. The agreement reached is currently awaiting the necessary legal approvals. The deal was also reflected in the stock market as Bharti Airtel shares hit a record high of 638.60 on Friday. 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. Telecommunications group Bharti Airtel signs its commercial agreement for the sale of 800,800 MHz radio waves in three circles to Reliance Jio Infocomm (Jio), which is the first agreement between the two telecommunications competitors. On Friday, Airtel announced in a regulatory filing with exchanges that it had entered into its commercial agreement with Reliance Jio to transfer the “right to use” Airtel`s 800 MHz spectrum to Jio in three circles. “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. The agreement is in line with the spectrum trade guidelines issued by the Ministry of Telecommunications.

Reliance Jio Infocomm Ltd (“RJIL”) said the final commercial agreement has been signed with Bharti Airtel Limited. “For the acquisition of the right to use frequencies in the 800 MHz band in the circles of Andhra Pradesh (2 x 3.75 MHz), Delhi (2 x 1.25 MHz) and Mumbai (2 x 2.5 MHz) by frequency exchange recorded by the DOT”, the Reliance Jio agreement was concluded. 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. Bharti Airtel said on Friday 13. August, conclusion of its pact to transfer the “right of use” of its 800 MHz spectrum in three circles to Reliance Jio Infocomm. The agreement with the telecommunications operator led by Mukesh Ambani was concluded by Airtel at 1004.8 crore. In addition to issuing the sum to secure the spectrum, Reliance Jio also assumed future liabilities of Rs 469.3 crore compared to the same. Over the past month, Bharti Airtel`s stock has outperformed the market by 20%, compared to a 4.8% increase in BSE Sensex. . According to RJIL`s official announcement, “RJIL paid a total consideration of Rs 1,183.3 crore (including taxes) to Bharti Airtel and assumed a deferred payment obligation with a net present value of Rs 469.3 crores.” The report adds: “With this trade with the right to use spectrum, RJIL will have an 800 MHz band spectrum footprint of 2 x 15 MHz in Mumbai County and 2 x 10 MHz each in Andhra Pradesh and Delhi counties, further improving its customers` network experience.” This means that the conclusion of the trade deal gives Jio the right to use Airtel`s 800 MHz spectrum in Andhra Pradesh, Delhi and Mumbai counties.

Don`t miss a story! Stay connected and up-to-date with Mint. Download our app now!!. Earlier this year, Airtel signed a definitive commercial agreement to sell its 800 MHz spectrum to Reliance Jio. The company then offered to sell 3.75 Mhz of bandwidth in Andhra Pradesh, 1.25 MHz in Delhi and 2.5 MHz in Mumbai, subject to regulatory and legal approvals. In October 2019, the Supreme Court ruled in favor of the center, which allowed the DoT to recover 92,641 crore of rupees through the EGR from operators in India. The telecommunications companies paid the fees and spectrum utilization fees (SUVs) to AGR, which amounted to Rs 92,641 crore. The CS ruled that the DOT`s claims to the AGR definition as well as the applicability of interest, penalties and penalty interest are both valid and that operators are required to pay 100% of the claim made by the DoT. Shares of Bharti Airtel were trading up more than 2% on ESB on Friday afternoon at ₹636 per share. 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. On Friday, August 13, Bharti Airtel was last listed up 1.56% to Rs 633 on BSE. . .

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