Airtel spends Rs 6,857 cr for 97 MHz of airwaves, mostly to renew permits; Jio picks up 14.4 MHz for Rs 973.62 cr

New Delhi: Bharti Airtel emerged as the top buyer in the spectrum auctions concluded on Wednesday, spending Rs 6,857 crore for 97 MHz of airwaves to renew permits in circles where they were expiring this year and fill gaps in some circles to increase coverage and capacity.

Rival Reliance Jio, the market leader, picked up 14.4 MHz of airwaves in the 1800 MHz band, spending Rs 973.62 crore, to bolster its existing network amidst increasing data usage and subscriber adds. Its limited spending is also because it is currently not facing any permit renewals.

Airtel in a notice to the stock exchanges said, “The spectrum purchase is in line with the company’s stated strategy to build a large pool of mid-band holdings to deliver seamless 4G and 5G services across the country.”

The country’s second-largest telco bagged 42 MHz in the 900 MHz band, 35 MHz in the 1800 MHz band, and 20 MHz in the 2100 MHz band. In addition, its wholly owned subsidiary Bharti Hexacomm has acquired 15 MHz of spectrum with an outlay of Rs 1,001 crore.

“Airtel has consistently been at the forefront of introducing disruptive technologies to India. As a result of the use of the mid-band spectrum, customers can enjoy enhanced browsing speeds in addition to improved indoor coverage,” the company said.

Analysts said Airtel spent 80% of the Rs 6,857 crore into winning back airwaves that were expiring while the remaining 20% were spent to boost its mid-band spectrum holding where it already has the highest share.

“It will be business as usual for Bharti Airtel and Reliance Jio. The renewal part is to maintain status quo, and filling the gaps is to make sure that wherever you have a smaller quantity of spectrum in a certain circle or band, you top it up so you can use an additional carrier,” said an industry analyst who did not wish to be named.

The gaps filled will help the telcos increase its coverage and capacity to serve more subscribers in those circles, he said.

Both Airtel and Jio topped up their existing holdings in the 1800 MHz and 2100 MHz bands, to ramp up their 5G coverage and improve 4G networks in rural India.

Jio in a statement said it has expanded its 1800 MHz band spectrum in two circles.

“Jio's spectrum footprint has increased to 26,801 MHz (uplink+downlink), solidifying its leadership position. 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 telco said.