InvestorQ : What is the idea of the Bharti Airtel / Reliance Jio deal on spectrum sale?
diksha shah made post

What is the idea of the Bharti Airtel / Reliance Jio deal on spectrum sale?

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ishika Banerjee answered.
2 months ago
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In the latest spectrum deal in the telecom space, Reliance Jio will acquire rights to spectrum usage in the 800 MHz band circles of Andhra Pradesh, Delhi and Mumbai from Bharti Airtel. Under the terms of the deal, Airtel's will transfer 3.75 MHz spectrum in Andhra Pradesh, 1.25 MHz in Delhi and 2.50 MHz in Mumbai to Reliance Jio.

For these spectrum rights, Jio will pay Bharti Airtel a sum of Rs.1,038 crore in cash. In addition, Reliance will assume deferred payment liability of Rs.459 crore taking the total payment to Rs.1,497 crore. For Airtel, this is a method of unlocking value of its idle spectrum and smoothen its cash flow needs in the short to medium term.

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