Videocon Telecom, telecommunication arm of the $ 4 billion worth Videocon Group, officially announced to participate in the upcoming spectrum auction scheduled to start on January 23, 2014.
The mobile operator plans to bid for additional spectrum for its Punjab and Madhya Pradesh circles. The first company to express interest in bidding for the spectrum auction, Videocon Telecom plans to bid for additional 2 mega hertz (MHz) to expand its customer base in the two circles. The company is also involved in valuating 900 MHz Delhi spectrum auction and if it is available near base price, Videocon might think of bidding for it too.
While talking to The Pioneer, Videocon Telecom’s Director and CEO, Arvind Bali explained how the company plans to use the additional spectrum.
He said, “We are currently at full utilisation of existing spectrum in Punjab and Madhya Pradesh circles and going forward, rather than investing money to set up more towers in the circles, we plan to acquire more spectrum instead. With additional spectrum we would be able to add to our customer size. Also it will increase our capacity to handle data and voice and improve the quality.”
With plans to introduce 4G long Term Evolution (lTE) Narrowband service in Punjab, Bali said, “Incremental capacity created by the additional 2 Mhz spectrum will be at least 2 times the existing capacity given the trunking efficiency. Also, the planned 2 Mhz additional spectrum in Punjab telecom circle, being a liberalised one, will give us the option to offer 4G lTE Narrowband service there.”
Talking about company’s future plans with other circles, Bali said, “Gujarat is expensive and we still have some space available there so we don’t plan to bid for that circle. May be in the next auction we might consider Gujarat circle also. As far as 900 MHz band for Delhi circle is concerned, our consultants are currently evaluating and if we get the spectrum near the base price, we might consider bidding for Delhi circle as well. But if the 900 MHz Delhi spectrum is available at a higher price, we will pass as it is difficult for a new player to enter Delhi circle amid strong competition.”
Videocon Telecom currently holds 4.4 Mhz spectrum in Punjab and 5 Mhz spectrum in Madhya Pradesh telecom circle, which includes Chattisgarh as well. With plans to bid for additional 2 Mhz in these service areas, as per the minimum price fixed by the Government for these areas, company would have to pay `190 crore for the additional spectrum. However, the final price will depend on the competition for airwaves in these service areas.
Videocon has purchased spectrum through auction in 6 out of 7 service areas where it has operations and plans to provide 4G services in these circles. The company is free to use any technology in the airwaves purchased through auction, known as liberalised spectrum. PTI