Reliance Communications has paid a government fee to liberalise spectrum in 16 Indian service areas (circles), after signing trading and sharing deals with Reliance Jio. The news comes days after the two operators announced a strategic partnership which will see them trade and share airwaves.
Reliance Communications (NSE:RCOM) has paid a government fee to liberalise spectrum in 16 Indian service areas (circles), after signing trading and sharing deals with Reliance Jio.
Billionaire Anil Ambani’s (pictured) RCom said in a stock exchange filing that the Rs53.84bn (US$791.72m) government fee relates to its spectrum in the 800-850 MHz bands.
The telco noted that the Kolkata High Court has already decided that it does not have to provide any bank guarantee for a one-time spectrum charge, as the department of telecommunications had requested.
Earlier this week, RCom inked spectrum trading and sharing pacts with Reliance Jio, owned by Anil’s brother Mukesh Ambani.
RCom, the country’s fourth largest mobile operator, has agreed to sell 800 MHz spectrum in nine circles to Jio, according to a Monday stock exchange filing, and the two will share 800 MHz bandwidth in 17 circles.
The pair said their strategic partnership would also include intra-circle roaming agreements.
The agreements are subject to the liberalisation of RCom spectrum in the 800 MH band and relevant approvals.
A week ago, RCom said it had heard back from the telecoms department about its plans to trade and share spectrum in the 800-850 MHz band, but was still awaiting a response about airwaves in a further four circles.
RCom is also still working on its planned three-way merger with smaller rivals Sistema Shyam Teleservices (SSTL) and Aircel in a bid to ensure it remains a strong competitor in the local market, which is expected to eventually shrink to six players or fewer.
Jio’s impending commercial launch is widely predicted to trigger a wave of consolidation. Bharti Enterprises chairman Sunil Mittal said in December that he thinks the survivors will be Bharti Airtel, Vodafone, Idea Cellular, Reliance Jio, state-run BSNL-MTNL and perhaps another merged entity.
