Airtel to acquire Videocon spectrum in six circles for Rs 4428 crore

NEW DELHI: India’s top telecom service provider Bharti Airtel said that it has entered into a definitive agreement with Videocon Telecommunications Limited (VTL) to acquire spectrum in six regions for Rs 4,428 crore.

“Bharti Airtel Limited has on March 16, 2016 entered into a definitive agreement with Videocon Telecommunications Limited (VTL) to acquire, at an aggregate consideration of Rs. 44,280 mn., rights to use 2 x 5 MHz spectrum in the 1800 MHz Band allotted to VTL by the Government of India, Ministry of Communication & IT, Department of Telecommunication (DoT) on April 05, 2013 for six circles,” the company informed BSE Ltd. (Bombay Stock Exchange).

Under the deal, the company to acquire spectrum in Bihar; Haryana; Madhya Pradesh; UP (East); UP (West) and Gujarat (Transaction), in terms of the Guidelines for Trading of Access Spectrum by Access Service Providers vide letter dated October 12, 2015 issued by the WPC Wing of the DoT (Spectrum Trading Guidelines). The aforesaid Spectrum is valid upto December 18, 2032,” the company said.

Yesterday, Aditya Birla group-led Idea Cellular and VTLhad mutually agreed to terminate their earlier agreement regarding ‘Transfer of Right to Use 1800 MHz Spectrum’ in two service areas with immediate effect.

On 24th November, 2015, the Board of Directors of Idea had empowered the company to enter into an acquisition agreement for right to use 1800 MHz spectrum of VTL, in the telecom service areas of Gujarat and U.P. (West) for an aggregate consideration of Rs.3,310 crores (approx.), pursuant to the DoT Guidelines for Trading of Access Spectrum by Access Service Providers dated 12th October, 2015.