Bharti Airtel has concluded its trading deal to sell 800 Mhz airwaves in three circles to Reliance Jio to transfer the ‘Right to Use’ of Airtel’s 800 MHz spectrum.
This means that trading deal closure gives Jio the right to use Airtel’s 800 Mhz spectrum in the Andhra Pradesh, Delhi, and Mumbai circles.
As per the agreement, Airtel said that the company has received Rs 1,004.8 crore (net of tax) from Reliance Jio for the proposed transfer. Additionally, Jio will assume future liabilities of Rs 469.3 crore relating to the spectrum.
In April, Airtel had announced a spectrum trading agreement with Reliance Jio.
The Sunil Mittal-led telco had announced in a release on April 6 that: “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.”
“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 Rs 636 per share in Friday’s afternoon deals on the BSE.