Reliance Jio banks on TD-LTE and FD-LTE, pays Rs 11,054 crore

Reliance Jio Infocomm (RJIL) will bank on both TD-LTE as well as FD-LTE technologies. The company has paid Rs 11,054 crore for the recently concluded 900/1800 MHz spectrum auction.

There are several mobile phones and devices available today which have the capability to operate both TD-LTE and FD-LTE technologies in the 1800 MHz and 2300 MHz bands as well as conventional 2G/3G networks. Rapid strides in global LTE rollouts and introduction of several new chipsets is making LTE enabled smartmobile phones and devices more affordable.

In any case, Wi-Fi enabled 2G/3G device can access RJIL’s services through an affordable pocket router.

RJIL is deploying an enhanced packet core network to create futuristic high capacity infrastructure to handle huge demand for data and voice. In addition to high speed data, the 4G network will provide voice services from/to non-RJIL networks.

Reliance Jio has successfully acquired the right to use spectrum in 14 key circles across India in the 1800 MHz band in the recently concluded spectrum auction conducted by DoT, government of India.

RJIL plans to use this spectrum, ranging from 2×5 MHz to 2×7 MHz in each of these 14 circles, in conjunction with its pan India 2300 MHz spectrum to address the expected surge in demand for digital services as well as to enhance in-building coverage. RJIL plans to provide seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem.

RJio has bagged metro circles of Delhi, Kolkata and Mumbai. In A category circles, the company has bagged Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu. For B category circles, Reliance Jio has bagged Kerala, Madhya Pradesh and West Bengal. The company has also bagged C category circles like Assam, North East and Orissa.

Through this acquisition, RJIL’s total equivalent spectrum footprint has increased from 440 MHz to 597.6 MHz.

Mukesh D Ambani, chairman and managing director, Reliance Industries said, “With this acquisition, Reliance Jio will be the holder of the largest quantum of liberalized spectrum and with the longest residual spectrum life. Reliance Jio’s seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on 2300 MHz through an integrated ecosystem, aims to provide unparalleled high quality access to innovative and empowering digital content, applications and services.”

Cost to RJIL for the right to use this technology agnostic spectrum for a period of 20 years is Rs. 11,054 crore. RJIL plans to opt to make an upfront payment of 33% with the balance payable in 10 equal annual instalments after a two year moratorium, as per the provisions of the Notice Inviting Applications issued by DoT.

RJIL has acquired the 1800 MHz spectrum at 31 percent premium to reserve price.

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