You are here: Home » Companies » News
Business Standard

Bharti Airtel acquires Videocon's spectrum in six circles for Rs 4,428 crore

Bharti to get access to Videocon's six 1800 MHz circles in Bihar, Haryana, MP, UP (East), UP (West) and Gujarat

Topics
Bharti Airtel

Malini Bhupta  |  Mumbai 

Bharti Airtel acquires Videocon's spectrum in 6 circles for Rs 4,428 crore

today announced that it had entered into a definitive agreement with Videocon to acquire the rights to use 1800 MHz spectrum in six circles for Rs 4,428 crore.

The development comes a day after Idea Cellular had called off its agreement with Videocon. Idea had agreed to pay Rs 3,300 crore for spectrum in two circles.

The six circles where Bharti gets access to 1800 MHz spectrum are Bihar, Haryana, Madhya Pradesh, UP (East), UP (West) and Gujarat (Transaction). The spectrum is valid up to December 18, 2032.

Bharti needed the additional spectrum in Haryana and Bihar circles. The acquisition will give Bharti the ability to offer high-quality data services. The company has strongest spectrum holdings in the industry today other than Reliance Jio. It has 18% spectrum of the total airwaves available in the country.

In the sub-1 gigahertz band, it holds 15% of the total, while it holds 17% in the 1,800 MHz band. In the 2100/2300 MHz band, Bharti holds 21%, but these bands are not as efficient for data propagation as the lower bands are. Vodafone launched its 4G services on 1800 MHz band in several circles.

Late last year, Idea Cellular stunned the industry by agreeing to pay Rs 3,310 crore to Videocon Telecommunications for the right to use spectrum in the 1800 MHz band in Gujarat and Uttar Pradesh West (2x5 MHz contiguous blocks of 1800 MHz in each service area). What came as a surprise to the industry was the price that Idea has paid for this spectrum, which was three times the price that Videocon paid in November 2012 (Rs 1,330 crore).

Idea Cellular now holds 1800 MHz 4G spectrum in 10 telecom circles which cover 50% of telecom market, but over 60% of Idea’s gross revenue.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, March 17 2016. 12:51 IST
RECOMMENDED FOR YOU
.