Idea Acquires Videocon’s Spectrum For Rs 3,130 Cr,Will Use New Spectrum To Scale In UP & Gujarat

Idea has entered into a strategic agreement with Videocon to use the latter’s spectrum to scale up their data and voice services. This agreement will allow Idea to use the new spectrum until December 2032, which the company intends to use for deployment of 4G (LTE) in UP and Gujarat.

The spectrum-sharing agreement comes after the DoT allowed access providers to trade unused spectrum.

The DoT had issued “Guidelines for Trading of Access Spectrum by Access Service Providers” on October 12, notifying the same.

The transaction will be effective only after the two companies complete certain complications and written permissions from the DoT.

The effective date of spectrum trading will not be earlier than 45 days from the date of joint intimation, as defined in Guidelines, said both parties in a statement.

Along with the right to use spectrum, Idea will also be taking over the outstanding ‘Deferred Payment Liability’ of Videocon Telecommunications Ltd., payable to the DoT, in respect of the spectrum being acquired for service areas of Gujarat and Uttar Pradesh (West) in the November 2012 Access Spectrum auction.

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