Bharti Airtel said it will pay Rs 3500 crore to acquire 4G spectrum of Aircel in 8 telecom circles. These 8 circles include Tamil Nadu, Bihar, J&K, West Bengal, North East Andhra Pradesh, Odisha, Chennai and Assam. Bharti Airtel will acquire airwaves in the 2300 MHz band from Chennai based Aircel.
Airtel said it will pay a sum of Rs 3,500 crore to buy the natural resource from Aircel in the stock exchange notice. Airtel said that it would buy Videocon Telecom’s 4G spectrum in six circles. The company said in the filing to the stock exchanges that, “With the above acquisition, Bharti Airtel would become a pan-India 4G operator.”
Airtel would buy 20 MHz of 4G spectrum. There 20 MHz of 4G was allotted to Aircel and its subsidiary Dishnet, and is valid till September 20, 2030. according to the company’s communiqué to the stock exchange, “Bharti Airtel and its subsidiary Bharti Hexacom have entered into definitive agreements with Aircel Ltd and its subsidiaries Dishnet Wireless Ltd and Aircel Cellular Ltd to acquire rights to use 20 MHz of 2,300 Mhz band 4G spectrum for eight circles for an aggregate consideration of Rs. 3500 crores.”
Airtel said, “The transfer of the right to use for the circles of Andhra Pradesh and Odisha is subject to the revision of spectrum caps with the upcoming auction to be conducted by the telecom department.”
Research director (communications services) at Gartner, Amresh Nandan said that, “Bharti will have better leverage on how to use spectrum across 2G, 3G and 4G services. This is critical when traffic is changing from voice to data.”
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