Mumbai : Reliance Jio Infocomm Ltd (“RJIL”) announces that it has successfully acquired the right to use spectrum in 14 key circles across India in the 1800 MHz band in the recently concluded spectrum auction conducted by DoT, Government of India. RJIL plans to use this spectrum, ranging from 2×5 MHz to 2×7 MHz in each of these 14 circles, in conjunction with its pan India 2300 MHz spectrum to address the expected surge in demand for digital services as well as to enhance in-building coverage. RJIL plans to provide seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem.

1800 MHz Spectrum Auction

RJIL has won the spectrum in the 1800 MHz band in all circles as per details given below, where it participated in the auction and where full contiguous block of 5 MHz spectrum was available:

 

Category

 

Circles

 

Metros

 

Delhi, Kolkata, Mumbai (all metros)

 

A

 

Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu (all category A circles)

 

B

 

Kerala, Madhya Pradesh, West Bengal

 

C

 

Assam, North East, Orissa

Through this acquisition, RJIL’s total equivalent spectrum footprint has increased from 440 MHz to 597.6 MHz (including uplink & downlink).

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “With this acquisition, Reliance Jio will be the holder of the largest quantum of liberalized spectrum and with the longest residual spectrum life. Reliance Jio’s seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem, aims to provide unparalleled high quality access to innovative and empowering digital content, applications and services.”

Cost to RJIL for the right to use this technology agnostic spectrum for a period of 20 years is Rs. 11,054 crore. RJIL plans to opt to make an upfront payment of 33% with the balance payable in 10 equal annual instalments after a two year moratorium, as per the provisions of the Notice Inviting Applications issued by DoT.

RJIL has acquired the 1800 MHz spectrum at 31% premium to reserve price. Winning bidders ofthe 900 MHz spectrum paid between 55% to 110% premium over the reserve price.

Source: Sachin Murdeshwar