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Indian mobile operator takes control of 20 MHz of 2.3-GHz spectrum in Orissa.
Bharti Airtel on Thursday revealed that it has closed the acquisition of mobile spectrum from rival Aircel in the Orissa circle.
India’s largest mobile operator agreed to acquire 2.3-GHz spectrum from Aircel in eight of India’s operating areas in April for 35 billion rupees (€462 million) and a month ago announced it had completed the deals in six of the eight circles, leaving Andhra Pradesh and Orissa outstanding.
In a statement to the Bombay Stock Exchange, Bharti said it has completed the acquisition of 20 MHz of airwaves in Orissa, having received all the required regulatory approvals and satisfied various closing conditions, including meeting spectrum trading guidelines.
In its statement, the telco reminded the market that it has already taken ownership of 20 MHz of frequencies in each of Tamil Nadu (including Chennai), Bihar, Jammu & Kashmir, West Bengal, Assam, and North East. However, it made no comment regarding its progress in Andhra Pradesh.
Spectrum allocations are currently top of the agenda in the Indian telecoms market, which is gearing up for its latest high-spend, multi-band frequency auction.
On Monday the Department of Telecommunications (DoT) made the announcement we have all been waiting for, revealing that the auction should get underway on 29 September. Would-be participants have until 13 September to submit their applications.
Despite being the market leader and one of the big spenders in last year’s auction, the extent of Bharti’s participation in the process is in doubt, in no small part because of its spectrum deal with Aircel and an earlier agreement that saw it pay Videocon INR44.28 billion (€588.92 million) for 1800-MHz spectrum in six circles.
The operator’s India chief executive Gopal Vittal recently indicated that it does not have a great need for additional spectrum and suggested that it will bid selectively in the upcoming auction.
Meanwhile, Telenor’s Indian unit and state-owned BSNL have also said they will not take part, in both cases for financial reasons. The government hopes to raise a substantial sum from the sale – reserve prices mean income of INR5.44 trillion if all the available spectrum is sold – but it is unlikely to reach its goal, with operators thinking carefully about the likelihood of returns on investment on those kinds of outgoings.
