Bharti Airtel rose 1.28% to Rs 403.80 at 9:30 IST on BSE after the company said that it has acquired 111.6 MHz of prime spectrum for a total consideration of Rs 29130 crore in the just concluded spectrum auction conducted by the Government of India.
The announcement was made before market hours today, 27 March 2015.
Meanwhile, the BSE Sensex was up 162.22 points or 0.59% to 27,619.80.
The stock hit high of Rs 404.25 and low of Rs 400.90 so far during the day.
Bharti Airtel said that it has acquired 111.6 MHz of prime spectrum across 900 MHz, 1800 MHz and 2100 MHz bands for a total consideration of Rs 29130 crore in the just concluded spectrum auction conducted by the Government of India. Of this, Rs. 17618 crore has been spent on the renewal of existing spectrum while the balance Rs 11512 crore has been spent on procuring new spectrum. The company's spectrum acquisition strategy is aimed at enhancing its leadership position in the fast growing data segment in the country. The auction results are subject to the outcome of the decision by the Supreme Court.
The company has successfully renewed all its spectrum holdings in the 900 MHz band in Andhra Pradesh, Karnataka, Punjab, Himachal Pradesh, Rajasthan and North East circles. It has also acquired additional spectrum in the 900 MHz band in key leadership circles of Karnataka, Andhra Pradesh, Punjab, Himachal Pradesh, North East, Assam, Bihar and Orissa. Bharti Airtel has also acquired 1800 MHz spectrum across Punjab, Andhra Pradesh, Kolkata, Orissa, Haryana and North East. The company has added to its spectrum holding in the 2100 MHz band by acquiring fresh spectrum in Gujarat, Maharashtra, Orissa, Uttar Pradesh (East), Madhya Pradesh, Haryana and Tamil Nadu circles. Post the latest spectrum acquisition, Bharti Airtel's spectrum mix will give it unmatched reach in the mobile data segment across 3G and 4G with a pan India footprint. The company will be able to offer pan India 4G services using a combination of FD-LTE technology in the 1800 MHz band and TD-LTE roll-out in the 2300 MHz band. It will also be able to offer 3G across all markets with the exception of Kerala using a combination of 900 MHz and 2100 MHz.
The Ministry of Communications & Information Technology said in a statement late yesterday, 26 March 2015, that the spectrum auction in 1800 MHz, 900 MHz, 2100 MHz and 800 MHz band, which commenced on 4th March 2015 and ended on 25th March 2015 after 115 rounds over 19 days, has fetched over Rs 1.09 lakh crore. In all 470.75 MHz has been put to auction in various LSAs. (in 800, 900, 1800 & 2100 MHz bands). This compares with 390 MHz in November 2012 and 426 MHz in February 2014.
There was robust activity in the all the spectrum bands and vibrant bidding. Prices have significantly increased in 50 of the 69 offerings with bid price being as high as 300% over reserve price in some instances. Over 88% of the spectrum on offer has been provisionally committed at a value of over Rs 1.09 lakh crore. Overall increases over estimated proceeds from auction is about 37%, Ministry said.
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