Spectrum auction: Reliance Jio acquires 1800 MHz for ₹974 cr

Billionaire Mukesh Ambani-led Reliance Jio has further consolidated its leadership position in the telecom sector by acquiring an additional spectrum in an auction conducted by the Department of Telecommunications which concluded today. The telecom arm of Reliance Industries (RIL) has acquired the right to use spectrum in the 1800 MHz band in 2 circles- Bihar and West Bengal - for ₹973.63 crore.

Jio has acquired 9.4 MHz of paired spectrum in West Bengal at a cost of ₹553.38 crore, while it has acquired 5.0 MHz of paired spectrum in Bihar for ₹420.25 crore, the country’s largest telecom operator says in a release.

With this acquisition, Jio's spectrum footprint has increased to 26,801 MHz (uplink + downlink), solidifying its leadership position, the release notes.

As per terms of the spectrum auction, the above spectrum cost can be paid over 20 equated annual instalments, with interest computed at 8.65% per annum, it adds.

“Jio has already deployed the largest amount of spectrum pan-India on bandwidth efficient technologies like 4G and 5G, with this incremental spectrum acquired to address geography-specific demand and ensure the highest quality customer experience on its network,” the release highlights.

As per the release, Jio is the only operator in India to have access in low-band, mid-band and high-band (700 MHz, 3300 MHz and 26GHz) spectrum which gives it advantage to provide a superlative experience to customers on 5G.

Akash Ambani, Chairman, Reliance Jio Infocomm, says, “We have already demonstrated our commitment to the Digital India Vision by rolling out one of the world’s fastest and widest Stand Alone 5G networks within 12 months of allotment of spectrum.

“This new spectrum acquisition will continue to enable us serving aspirations of the new India, in terms of growing traffic demands and superior customer experience, which is no longer limited to only urban markets. We want every Indian to enjoy the transformational benefits of Jio’s next generation of digital solutions,” adds Ambani.

Meanwhile, rivals, Airtel acquired 97 MHz 5G spectrum in 900 MHz, 1800 MHz and 2100MHz frequency bands through the auction for ₹6,857 crore. Debt-laden Vodafone Idea Limited (Vi) acquired 30 MHz of spectrum across the low and mid bands (900 MHz, 1800 MHz, and 2500 MHz) in 11 circles for a total investment of ₹3,510 crore.

The 5G spectrum auction for mobile radio wave services concluded today with a lukewarm response as total bids worth ₹11,340.78 crore were placed today by the three key telecom players. The auction, which lasted just over a day, ended after seven rounds, five of which were conducted on Tuesday.