Mukesh Ambani-led Reliance Jio has paid an advance of Rs.2,800 crore to Anil Ambani’s Reliance Communications (RCom) for spectrum trading for which it is awaiting government clearance.
The Department of Telecommunications (DoT) on Friday approved the spectrum sharing deal between the Ambani brothers led firms.
“This is besides the spectrum sharing deal and gives us access to operate in the 850 MHz band,” said Anshuman Thakur, Head of Strategy and Planning at Reliance Jio.
RJio is likely to acquire spectrum from RCom through spectrum trading in 13 circles and RCom in January paid Rs. 5,384 crore to the government as liberalisation fee in relation to spectrum in the 800/850 MHz band held by it in 16 telecom circles.
“We wish to inform that Department of Telecommunications (DoT) has taken on record 800Mhz Spectrum Sharing in 7 circles of the company and 2 circles of Reliance Telecom Limited (RTL), wholly-owned subsidiary with RJIL on 21st April 2016,” according to a statement from RCom.
This paves the way for the rollout of 4G services by RCom, as now in these nine circles RCom and RJio can have a common Radio Access Network and will not have to duplicate the investment on separate radio networks.
RCom shares rose 5.5 per cent on the BSE to Rs 56.95 in a flat market.
