RJIL acquires spectrum in 14 circles
Reliance Jio Infocomm Ltd ("RJIL") announces that it has successfully acquired the right to use spectrum in 14 key circles across India inthe 1800 MHz band in the recently concluded spectrum auction conducted by DoT, Government of India.
RJIL plans to use this spectrum, ranging from 2x5 MHz to 2x7 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.
Through this acquisition, RJIL's total equivalent spectrum footprint has increased
from 440 MHz to 597.6 MHz.
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 33pc 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 31pc premium to reserve price. Winning bidders ofthe 900 MHz spectrum paid between 55pc to 110pc premium over the reserve price.
Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited (RIL), India's largest private sector company, is the first telecom operator to hold pan India Unified License.
(Posted on 14-02-2014)