Reliance Jio pays a whooping Rs 13,672 crores to acquire 269.2 Mhz spectrum

The mega spectrum auction on Thursday witnessed Mukesh Ambani-led Reliance Jio making a committment of Rs 13,672 crore for 269.2 Mhz of airwaves.

The new telecom entrant acquired spectrum in 800 Mhz, 1800 Mhz and 2300 Mhz bands across all the 22 service areas in the country, said Jio, which launched its 4G services last month. "We have expanded our spectrum footprint thereby significantly enhancing capacity of our all-IP data strong network and ensuring world class services for all Indians.

Jio is committed to taking India to global digital leadership by bringing the power of data to all Indians," Mukesh D Ambani, Chairman, Reliance Industries said in a statement.

The company, last month, announced that it will offer free voice for life for its subscribers while the data would be charged at a fraction of the prevailing market rates, a move that prompted other operators to slash data prices and led to a fierce data tariff war in the telecom sector.

Interestingly, during the auction most of the action was seen in the 1800 Mhz and 2300 Mhz bands - both of which can be used for delivering 4G services. Reliance Jio bought spectrum worth Rs 3,623 crore in 800 Mhz band, of worth Rs 2,154 crore in 1800 Mhz band and of about Rs 7,895 crore in 2300 Mhz band, taking the grand total to Rs 13672 crore.

In the 800 Mhz band - which is generally used for 2G and 4G services - the company acquired airwaves in Gujarat, Punjab, Rajasthan and UP East. In the, 1800 Mhz band, it secured spectrum in Bihar, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, UP and West Bengal circles. In the 2300 Mhz band - used for 4G services - it secured airwaves in circles except Haryana, J&K, Punjab, Rajasthan and UP.

"RJIL has renewed its expiring spectrum in 800 MHz band in Gujarat circle and purchased additional spectrum in the 800 MHz, 1800 MHz and 2300 MHz bands at 6.5 per cent premium to reserve price," the company said. Through this acquisition, the company's total spectrum footprint has now increased to 1,108 MHz with an average life of over 16 years, it added.