Telecom operator Reliance Jio said it has acquired spectrum in three bands- 800 MHz, 1800 MHz and 2300 MHz at the Spectrum Auction 2021. The purchased spectrum, according to Reliance Jio, is worth Rs 57,123 crore (subject to DoT confirmation. With this new spectrum, Jio increases its footprint by 55% to 1717 MHz and has the largest spectrum holding in Sub-GHz and 2300 MHz bands. Starting this July, Reliance Jio's liberalised spectrum license was set to expire, which is why the telco acquired a large chunk of spectrum in the 800 MHz band to continue providing 4G services. Jio also says it has an enhanced spectrum footprint with a minimum of 2 * 10 MHz in the 1800 MHz band and 40 MHz in the 2300 MHz band across all circles. It also said the acquired spectrum would be suitable for use with 5G technology.
Reliance Jio Spectrum Holding Circle Wise Detailed
In the Spectrum Auction 2021, Reliance Jio looked at purchasing spectrum that will be required to provide uninterrupted services to its over 400 million subscribers. The spectrum in the 700 MHz band continues to remain unsold. Circle wise details of spectrum acquired are provided in the following table:
Maharashtra 10.00 5.00 10.00
Mumbai 7.50 3.40 10.00
North East 0.00 3.60 10.00
Odisha 5.00 5.00 10.00
Punjab 6.25 4.80 20.00
Rajasthan 5.00 0.00 20.00
Tamil Nadu 10.00 3.20 10.00
UP East 5.00 3.60 20.00
UP West 5.00 5.00 20.00
West Bengal 10.00 0.00 10.00
Total 133.75 74.60 280.00
The acquired spectrum can be utilised for the transition to 5G services at the appropriate time, where Jio has developed its own 5G stack, said the company.The Reliance Industries-owned telco confirmed that it achieved complete spectrum derisking with average validity of owned spectrum at 15.5 years. Through this Spectrum Auction 2021, Jio's total owned spectrum footprint has increased significantly by 55% to 1717 MHz (uplink+downlink). The spectrum has been acquired in the most cost-efficient manner with an effective cost of Rs 60.8 crore per MHz, said the telco in a press statement.
As for the pricing, the telco will be required to pay Rs 57,123 crore with an upfront payment of Rs 8,623 crore for the 800 MHz band, Rs 6,231 crore for the 1800 MHz band and Rs 5,085 crore for the spectrum purchased in the 2300 MHz band. The following table gives a clear explanation of the payments to be made by Jio to the government.
|Frequency Band||Upfront Payment||Deferred Payment||Total Payment|
|800 MHz||8,623 Crore||25,868 Crore||34,491 Crore|
|1800 MHz||6,231 Crore||6,231 Crore||12,461 Crore|
|2300 MHz||5,085 Crore||5,085 Crore||10,170 Crore|
|Total||19,939 Crore||37,184 Crore||57,123 Crore|
As per terms of the spectrum auction, the deferred payments have to be made over a period of 18 years (two-year moratorium plus 16 year repayment period), with interest computed at 7.3% per annum.