Reliance Jio and Bharti Airtel, two of the top telecom operators in India have concluded their spectrum trading deal. For the unaware, the telcos had announced about the trading deal earlier this year where Bharti Airtel had agreed to transfer the rights of its spectrum in the 800 MHz band in Delhi, Mumbai, and Andhra Pradesh to Reliance Jio. Today, a joint statement that came from Airtel said that the deal between the telcos is complete. Reliance Jio has completed the payment for the spectrum.
Reliance Jio Paid Rs 1,004.8 Crores to Bharti Airtel
The statement said that Reliance Jio has paid Rs 1,004.8 crores to Bharti Airtel for the proposed transfer. Reliance Jio has also assumed the future liabilities worth Rs 469.3 crores that are related to the spectrum.
This is a win-win deal for both the operators. Bharti Airtel can use this money to pay off its upcoming dues instalment and also use it to expand and enhance its network. At the same time, with the additional spectrum in the 800 MHz band, Reliance Jio will be able to provide better network coverage both indoors and outdoors to its users living in Delhi, Mumbai, and Andhra Pradesh.
Bharti Airtel had said that it would be selling 2.50 MHz of spectrum in Mumbai, 1.25 MHz in Delhi, and 3.75 MHz in Andhra Pradesh to Reliance Jio. The deal has also allowed Bharti Airtel to get rid of the extra spectrum along with some debt related to it.
This deal between both the companies is a sign that regardless of all the tough competition and rivalry, the telcos can make rational decisions without getting egoistic about taking help from each other. This is a positive sign for the Indian telecom industry as well which is currently struggling financially and waiting for a relief package from the government.
With the trading deal completed, Jio’s network services are expected to improve further.