Vodafone Idea, India’s third-largest telecom operator, has outlined its growth strategy after purchasing spectrum worth ₹3,510 crore during the spectrum auction today.
The company acquired 50 MHz of spectrum across low and mid-band frequencies (900 MHz, 1800 MHz, and 2500 MHz) in 11 circles during the spectrum auction that concluded today. This makes Vodafone Idea the second-largest buyer in this auction.
The newly acquired spectrum includes renewing 900 MHz spectrum in the UP West and West Bengal circles and enhancing its 900 MHz holdings in seven circles: Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, UP East, and Kolkata. This enhancement will allow Vodafone Idea to allocate sufficient 900 MHz band spectrum for 4G services.
Vodafone Idea aims to improve the 4G experience for its customers, particularly indoors. In Andhra Pradesh, Tamil Nadu (excluding Chennai), Punjab, and large parts of Karnataka and Uttar Pradesh (East), 4G on the sub-GHz 900 band will be offered for the first time, resulting in better coverage and user experience. Additionally, the acquisition of 1800 MHz spectrum in Madhya Pradesh and 2500 MHz spectrum in Bihar will help boost network capacity.
With a strong and competitive 5G spectrum portfolio in its 17 priority circles, Vodafone Idea’s spectrum acquisition aligns with its long-term strategic plan to deliver a superior customer experience and effectively utilize spectrum across existing and emerging technologies. Vodafone Idea did not reveal its 5G launch plans despite earmarking spectrum for 5G.
In 2024, Vodafone Idea raised approximately ₹24,000 crore in equity, including a proposed preferential issue of ₹2,458 crore to Nokia and Ericsson, pending shareholder approval. The company is also in active discussions with lenders to secure up to ₹25,000 crore in debt funding. This combined funding will support Vodafone Idea in expanding its 4G coverage, launching 5G services, and capitalizing on significant opportunities in the Indian wireless sector.
Vodafone Idea, with a subscriber base of 212.6 million as of March 31, 2024, covers over 1 billion Indians with its 4G network. The company boasts a competitive spectrum profile, extensive distribution reach, a well-established brand, and differentiated digital offerings, positioning it strongly in the market.
Akshaya Moondra, CEO of Vodafone Idea, stated, “VIL has strategically acquired spectrum in select markets to enhance and strengthen its overall spectrum portfolio. This acquisition will enable us to effectively use dedicated sub-GHz spectrum towards advanced technologies to enhance the experience we offer to our customers.”
Baburajan Kizhakedath
