Highlights
- Erasing rivalry between Airtel and Reliance with a new deal
- Airtel sells the spectrum of 800 MHz to Jio
- Customers are likely to benefit from these new changes.
Among the most bitter rivalry present in the telecom industry, the competition between Bharti Airtel and Reliance Jio is almost legendary. However, news shows that the two companies are signing a deal that will be dividing their assets to some extent. Jio Airtel deal is an excellent change in the world of the telecom industry of India..
What Is The Deal About?
Bharti Airtel will be sealing specific parts of its integrated spectrum to Reliance Jio in some particular circles. A definitive target deal solely related to the 800 MHz spectrum is being sold to the Reliance JioTeam in this deal. This will also provide a state of solidarity for both the companies which have been on the warring sides to date.
It is proclaimed through this agreement that Airtel will be receiving the consideration of Rs 1037.6 crores from the team of Reliance Jio. The proposed transfer will be beneficial for both teams. For Airtel, they will be enjoying a rise in their revenue right at the moment. Whereas with Reliance Jio, the 800 MHz spectrum will bring a considerable amount of profit in the longer run. Reliance will also carry future liabilities, which amount to almost Rs 459 crores regarding the spectrum for a long time. This will result in a win-win situation for both organizations.
The Significance Of This Deal For JIO And Airtel
It has been announced that Bharti Airtel and Reliance industries will be signing a deal that will remove their previous warring conditions. This Jio Airtel deal is a symbolism that the two major companies are finally focusing on their will to change the state of bitter rivalry and finally focus on something that would change the customers’ view. In either of the cases, the one to benefit is the customers of both companies.
Benefits For JIO and Airtel
Reliance Jio has announced that they have signed this Jio Airtel deal to help their customers with better 4G services. The spectrum which has been bought has a special significance due to the acceptance of fast internet connection. On the other hand, Bharti Airtel will also realize the significance of the 800 MHz. If they deem it to be very important for their business, they can always repurchase it from Reliance at a reasonable price.
Conclusion
Finally, it is happy news for the customers on both sides. It is expected that the services of both telecommunication companies will improve with time. Simultaneously, it has also opened up some scopes for the two companies to interact with each other.