Two of the most bitter rivals in the telecom industry, Reliance Jio and Bharti Airtel, have signed a spectrum agreement. The deal marks the first-ever such deal between the two companies. Here’s what the deal is all about.

Airtel is selling a part of its spectrum to Reliance Jio in some circles. The company has signed a “definitive” trading deal to sell its 800 MHz spectrum to Reliance Jio Infocomm.

Through this agreement, Airtel will receive a consideration of Rs 1037.6 crores from Jio for the proposed transfer. In addition, Jio will assume future liabilities of Rs 459 crores relating to the spectrum,” Airtel said in a statement.

The deal to sell 800 MHz spectrum to Reliance Jio Infocomm is for Andhra Pradesh, Delhi and Mumbai circles. Airtel will sell 3.75 MHz of bandwidth in Andhra Pradesh, 1.25 MHz in Delhi and 2.50 MHz in Mumbai, subject to regulatory and statutory approvals.