Idea Cellular has entered into agreement with Videocon Telecommunications for acquiring right to use spectrum of Gujarat and Uttar Pradesh (West) for Rs 33.10 billion. This agreement for the company’s two Leadership telecom circles is for a quantum of 2x5 MHz contiguous blocks of 1800 MHz in each service areas, with right to use spectrum until December, 2032.
The company intends to use this acquired spectrum for launch of 4G (LTE) Mobile Broadband Services in the service areas of Gujarat and Uttar Pradesh (West). The amount of outstanding 'Deferred Payment Liability' after repayment of first instalment on Dec. 1, 2015 by Videocon Telecommunications will be Rs 4.82 billion and this amount plus interest accrued thereon till the date of closing of transaction will be reduced from the payment of the aggregate consideration.
Idea Cellular, an AV Birla group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, it is present in all 22 telecom circles.
