Bharti Airtel will be paying Rs. 3500 crore to acquire rights to use 4G spectrum of Aircel in 8 telecom circles. This is their second deal happened in less than a month. And soon Airtel will become one of the firms operating all over the country for providing high speed mobile and goo data services. They will soon become a pan India 4G player. Aircel, one of the largest telecom operator, will be soon acquiring 200MHz spectrum.
The 8 telecom circles where Bharti Airtel will acquire 2300 MHz spectrum radio-waves are Jammu & Kashmir, Tamil Nadu, Bihar, West Bengal, Assam, North East, Andhra Pradesh and Odisha. They have won the spectrum in the government auction and have the right to hold it till September 20, 2030. The company said that it, along with its subsidiary Bharti Hexacom, has entered into a deal with Aircel and its subsidiaries Dishnet Wireless and Aircel Cellular and have acquired the rights for the spectrum.
With the help of this deal, Aircel will be able to pay the debt and also it will help them in merging with Reliance Communications. According to the sources, Aircel needed Rs. 4,000 crore to clear the debt.
Airtel communicated in an official statement, “The transfer of 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 DoT.”
Earlier this year, Bharti had bought Radio Waves from Videocon Telecommunications for six regions for Rs. 4,428 crore to increase its network coverage. In this deal, the firm got the rights to use 1,800 MHz band spectrum in Bihar, Haryana, Madhya Pradesh, Uttar Pradesh and Gujarat. The license for this will expire in 2032.
This is the third acquisition after the government allowed trading of radio waves in October. Earlier, R-com and Aircel had decided to retain Aircel’s 2300 MHz spectrum, but due to the pressure of the debt, Aircel went ahead with Airtel. Airtel was the first to start the 4G services in 2012. It then expanded its service to more than 350 cities.
Reliance Jio is also expected to launch its 4G services by the end of this year. Earlier this year, Reliance Jio and Reliance Communications signed a spectrum in January. In this they will be sharing across 17 wireless networks in the 800MHz band.