Vodafone to bet on 3G after buying spectrum for Rs 25,810 crore

Vodafone India aims at improving 3G coverage in the country after acquiring spectrum in 12 telecom circles in the March 2015 auction for Rs 25,810 crore or £2.78 billion.

Vodafone India purchased spectrum in all six of its 900 MHz circles due for extension in December 2015. Vodafone India acquired 5 MHz of 900 MHz band spectrum in Orissa and added 30 MHz of spectrum in the 2100 MHz band in six new circles.

Vodafone India has bought additional 5.6 MHz of 1800 MHz spectrum in three circles to complement the 49 MHz of 1800 MHz spectrum acquired in the February 2014 auction.

Vodafone India will be able to expand its 3G service over its own network from 9 circles to 16 circles. These circles represent 88 percent of Vodafone India’s service revenues.

Earlier in the day, the government said the spectrum auction in 1800 MHz, 900 MHz, 2100 MHz and 800 MHz band, which commenced on 4th March 2015 and ended on 25th March 2015 after 115 rounds over 19 days, has fetched over Rs 1,09,874 crore.

Vodafone 3G growth

In addition to buying spectrum in all its key circles that were under auction, Vodafone has acquired new 3G spectrum which will enable the company to increase further the number of Indian customers benefiting from high speed data services.

Vodafone’s investment totals Rs 258.1 billion or £2.78 billion of which Rs 68.2 billion or £733 million is payable shortly, with the remainder payable in 10 equal annual installments starting in two years. The spectrum won has a 20 year term.

In February 2014, Vodafone India acquired spectrum in 11 telecom circles – a total of 23 MHz in the 900 MHz band in Mumbai, Delhi and Kolkata, and a total of 49 MHz in the 1800 MHz band in Mumbai, Delhi, Kolkata, Karnataka, Kerala, Gujarat, UP East, Rajasthan, Haryana, Andhra Pradesh and Punjab. The spectrum has a 20 year term.

Vodafone India has the largest voice and data traffic usage within the Vodafone Group. At 31 December 2014, it had 179 million customers, with 59 million data users, of which 17 million use 3G. Average data usage per customer grew by 40 percent year-on-year.

Baburajan K
editor@telecomlead.com

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