Bharti Airtel acquires 97 MHz of spectrum worth Rs 6,857 crore for 20 years

The spectrum auction saw the government receive Rs 11,300 crore in bids over seven rounds, with Airtel emerging as the largest overall bidder

Telecom major Bharti Airtel has secured 97 MHz of spectrum in the 900 MHz, 1800 MHz, and 2100 MHz frequency bands in an auction concluded on June 26 for a total of Rs 6,857 crore. This spectrum, obtained for 20 years period, aims to enhance the company’s mid-band holdings across key circles.

In an exchange filing, Airtel mentioned that the newly acquired spectrum would bolster its existing mid-band spectrum pool, making it the largest in the country. This acquisition includes the renewal of spectrum set to expire in 2024, ensuring continuity and improved service delivery.

Additionally, Bharti Hexacom Ltd, a subsidiary of Bharti Airtel, acquired 15 MHz of spectrum with an outlay of Rs 1,001 crore.

Commenting on the acquisition, Gopal Vittal, managing director and CEO of Bharti Airtel, said, “Airtel continues to judiciously acquire the right amount of spectrum to deliver the best possible experience to our customers. In this auction, we have bolstered our sub-giga hertz and mid-band holding which will significantly improve our coverage, especially indoor.”

Earlier this month, Bharti Airtel prepaid Rs 7,904 crore to the Department of Telecommunications (DoT), fully settling all deferred liabilities from spectrum acquired in the 2012 and 2015 auctions. These payments were made to clear liabilities that bore high-interest costs of 9.75 per cent and 10 per cent, respectively.

Govt Rs 11,300 crore in bids in spectrum auction

The recently concluded spectrum auction saw the government receiving Rs 11,300 crore in bids over seven rounds, falling significantly short of the reserve price of Rs 96,317 crore for the 10,523.15 MHz of spectrum available. This is a contrast to the 2022 auction, which attracted Rs 1.5 trillion, largely due to the introduction of 5G airwaves.

Officials at the DoT indicated that Bharti Airtel emerged as the largest overall bidder, primarily due to its need to renew spectrum in the 900 MHz band across multiple telecom circles.

Bharti Airtel’s shares closed at Rs 1078.05 on the BSE, up more than 5 per cent on Wednesday.