Reliance Communications (RCom) has paid ₹5,383.84 crore to the Department of Telecom as a fee to use its spectrum for both voice and data services. Technically called liberalisation of spectrum, this will pave the way for RCom to trade and share its 800 MHz spectrum to Reliance Jio Infocomm (RJio).

RCom will liberalise spectrum it holds in the 800 MHz band across 16 telecom circles. This is being done because the Centre took a decision that operators which got spectrum under the earlier subscriber linked criteria would have to pay the market determined price if they wanted to offer services based on 3G or higher technologies.

“This clears an important overhang for RCom as now, we have much more visibility on the collaboration agreements they are entering into with RJio,” said Pankaj Sharma, Head of Equities at Equirus Securities.

On Monday, RCom had entered into agreements to sell spectrum across nine circles to RJio, a company controlled by Ambani’s elder sibling Mukesh Ambani. The deal, one among a string of infrastructure sharing agreements, also included sharing of spectrum across 17 circles in the country.

According to sources, the liberalisation of spectrum will enable RCom to offer 800 MHz band across nine circles, enabling RJio to offer 4G services in these circles. Subsequently RJio and RCom will share spectrum in 17 circles, and eventually it will be extended to all the 22 circles.

At present, RCom is awaiting DoT approval to liberalise 800 MHz spectrum across Rajasthan, Kerala, Karnataka and Tamil Nadu where no benchmark market price has been fixed. The company is also awaiting approval to liberalise spectrum in Jammu & Kashmir, where some technical issues have to be sorted out.

rajesh.kurup@thehindu.co.in

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