Upcoming spectrum sale crucial for Idea, Vodafone to expand 3G, 4G footprint

The upcoming spectrum auction will be crucial for Vodafone and Idea Cellular in getting pan-India footprint for 3G and 4G services.

The two operators have gaps in their existing network and may need to acquire more spectrum to compete with the likes of Airtel and Reliance Jio, which have spectrum for data services across the country.

There are 7 circles where Vodafone has neither 3G nor 4G spectrum while Idea is lacking in airwaves for data play in at least 5 circles. For example, In Andhra Pradesh, Vodafone has no spectrum for high speed data services. Therefore, it may have no option but buy the expensive 700 MHz band. Vodafone could also bid for the 800 MHz band, which is useful for 4G services.

Similarly, for Idea Cellular, getting 4G spectrum in Delhi could be crucial. But Idea should not have too much trouble in acquiring more spectrum as there is enough available in the 1800 & 2100 MHz band, which is much lower priced than 700 MHz. “In circles where Vodafone and Idea are without 4G spectrum, they are likely to go for spectrum other than 700 MHz wherever available. This round of auction is crucial for the two operators if they want to match up to the other two big players- Airtel and Rjio,’ said an industry analyst.

But its not as if the auction does mean much for Airtel and Jio. Although Airtel has a mix of 1800 MHz and 2300 MHz for its 4G play, it can use the spectrum available in the 2300 MHz band, to plug gaps in all the circles except in J&K, Rajasthan, UPE & UPW where neither 2300 or 2500 MHz is available for auctions. Airtel can also buy 3G airwaves in the 2100 MHz not just in areas where it does not have 3G but also to bolster bandwidth in existing circles. 

For RJio, the auction gives an opportunity to buy more in both 800 MHz band and 1800 MHz band to create a pan-India 1800 MHz band footprint and plug the gap in the 800 MHz in Andhra Pradesh, Maharashtra, Punjab and Rajasthan. 

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