Vodafone Idea Pumps ₹3,510 Cr In Spectrum Acquisition To Boost 4G, 5G Services

Vodafone Idea has acquired 50 megahertz (MHz) of spectrum across 11 circles. The company has committed a total of ₹3,510 crore towards this acquisition, which was concluded in the spectrum auction held on Wednesday.

What Happened: The Department of Telecommunications, Ministry of Communications, conducted the spectrum auction on Wednesday. The acquisition comprises low band and mid band spectrum (900 MHz, 1800 MHz, and 2500 MHz). Vodafone Idea has renewed its 900 MHz spectrum in UP West and West Bengal circles and expanded its 900 MHz spectrum holding in seven circles, including Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, UP East, and Kolkata.

The company’s strategy is to allocate sufficient 900 MHz band spectrum for 4G, thereby improving the 4G experience for its customers, especially the indoor experience. Besides the 900 MHz spectrum, the company has also acquired 1800 MHz spectrum in Madhya Pradesh and 2500 MHz spectrum in Bihar, which will aid in enhancing the network capacity swiftly.

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Akshaya Moondra, CEO, Vodafone Idea Limited, stated, “This acquisition will enable us to effectively use dedicated sub GHz spectrum towards advanced technologies to enhance the experience we offer to our customers. As VIL embarks on its growth journey with the fund-raising plan in place, this spectrum acquisition will further strengthen its competitive position in the market.”

The company has raised approximately ₹24,000 crore of equity in 2024 and is in active discussions with its lenders to raise debt funding of up to ₹25,000 Crore. This spectrum acquisition, coupled with the comprehensive fundraise, is expected to enable the company to expand its 4G coverage and launch 5G services.

Why It Matters: This acquisition comes at a time when Vodafone Idea is actively seeking to enhance its network capabilities. The company had earlier entered into a collaboration with Samsung for the deployment of 4G and 5G virtual Radio Access Network (vRAN) solutions in two circles. This strategic move is expected to augment the network capabilities of Vodafone Idea.

Earlier in the day, Bharti Airtel announced investing ₹6,857 crore in the procurement of 97 megahertz spectrum to enhance its 4G and 5G services.

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