On day 2 of the spectrum auctions and Bharti Airtel acquired 355.45 megahertz (MHz) spectrum for Rs 18,699 crore.
This is higher than the market estimate of Rs 15,000 crore but it’s not seen as very aggressive. The street would not have liked a number more than Rs 20,000 crore. So, in that sense it’s not a bad outcome for Bharti Airtel, which is what is priced in.
The company said that they have acquired spectrum in 800, 900, 1800, 2100 and 2300 MHz spectrum.
The company has spectrum expiring in 8 circles. Therefore, going by the numbers, they appeared to have renewed it in 7-circles. So the balance that they have acquired appears to be a capacity spectrum in many circles and with this the company now has a pan India presence sub-gigahertz spectrum, which is below 1,000 MHz band which is similar to Jio.
This is important because it improves rural coverage and indoor coverage. So in that sense it’s a smart move done by the company to acquire that.
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