Videocon Telecom to sell spectrum to Idea Cellualr for Rs.3,310 crore

Idea Cellular has entered into an agreement with Videocon Telecommunications for acquiring the rights to use the latter's spectrum for the telecom service areas of Gujarat and Uttar Pradesh (West) for Rs.3,310 crore through a spectrum trading agreement, a statement said here on Tuesday.

"This agreement for Idea's two Leadership telecom circles is for a quantum of 2x5 MHz contiguous blocks of 1800 MHz in each service area, with right to use spectrum until December 2032, which Idea Cellular intends to use for deployment of 4G (LTE) services in these service areas," Idea Cellular said in the statement.

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The transaction will be effective only after completion of the due diligence related to the spectrum, and written confirmation by Department of Telecommunications (DoT) on the transfer of right to use spectrum to Idea Cellular.

"Idea intends to use this acquired spectrum for launch of 4G (LTE) Mobile Broadband Services in the service areas of Gujarat and Uttar Pradesh (West). With this spectrum trading arrangement, Idea's 4G (LTE) spectrum footprint will expand to 12 service areas covering over 75 percent of Idea's current revenue," it said.

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After completion of this transaction, Idea would have full range of mobility services across 2G, 3G and 4G technologies in all of its eight markets of Maharashtra and Goa, Kerala, Andhra Pradesh and Telengana, Madhya Pradesh and Chhattisgarh, Haryana, Punjab, Gujarat and Uttar Pradesh (West).

Source IANS