The positioning of Vodafone Idea (VIL) — which picked up a modest 11.80 MHz spectrum — could potentially ‘worsen’ as rival telcos will be able to boost their coverage and capacity after buying additional radiowaves in the just-concluded auctions, according to a report.
VIL has bought spectrum to cover minor gaps in five circles for ₹1,993.4 crore, while Bharti Airtel shelled out nearly ₹18,700 crore for 355.45 MHz radio waves and Reliance Jio ₹57,123 crore for 488.35 MHz spectrum.
“VIL’s positioning may possibly worsen as other operators will be able to enhance their coverage and capacity further post acquisition of additional spectrum in the recent round,” a note by Kotak Institutional Equities said.
The deft moves by Bharti Airtel and Reliance Jio in shoring up their spectrum holding will allow the two telcos to enhance their user experience further, “compounding woes for VIL.”
As per the Telecom Department, VIL has bought 5.8 MHz spectrum in 900-band and 6 MHz in the 1800-band. It has acquired spectrum in 900 band for ₹1,274 crore and 1800 band for ₹719 crore.
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