Vodafone Idea To Get Boost In 4G Capabilities From Newly Unveiled 20MHz Spectrum: Report

The Department of Space has made an additional 20 MHz of spectrum in the 2,500 MHz band, available for mobility usage, valued at Rs 11,000 crore, in a move to improve the capacity and quality of mobile services in India. According to a report by The Economic Times, this calculated move is anticipated to provide the troubled telecom service provider Vodafone Idea (Vi) a significant boost and open the door for additional auctions.

The recently released spectrum is a major changer for Vodafone Idea, which now has a contiguous block of spectrum in the 2,500 MHz range. Previously, Vodafone Idea's spectrum holdings in this band were divided into two non-contiguous blocks, one of 20 MHz and the other 10 MHz. The most recent release harmonises these frequencies, allowing Vi a continuous 30 MHz across the country. This enhancement is expected to boost Vi's 4G network capabilities, allowing it to provide higher-quality services to its clients.

Before this release, only 40 MHz of spectrum in the 2,500 MHz band was available for mobile operations, divided into two non-contiguous blocks. With the latest addition, the total spectrum accessible for mobile use in this band has increased to 60 MHz, of which 40 MHz is now contiguous. This innovation is expected to provide telecom operators with increased spectrum efficiency and service quality.

An anonymous insider told The Economic Times that Vodafone Idea had been pursuing contiguous spectrum for years but had been unable to do it due to a lack of availability until recently. Although Vi did not react to ET's questions on the report.

Along with Vodafone Idea, the state-run Bharat Sanchar Nigam Ltd (BSNL) uses the 2,500 MHz spectrum for its 4G services. Meanwhile, Bharti Airtel and Reliance Jio each use 40 MHz of the 2,300 MHz spectrum for their 4G needs. The Department of Telecommunications (DoT) intends to auction the newly available spectrum in future sales, with industry analysts speculating that Vodafone Idea and BSNL may be interested in acquiring the extra 20 MHz to boost their spectrum holdings.

The Department of Space's release of an extra 20 MHz of spectrum in the 2,500 MHz band is a strategic move to strengthen the capabilities of India's telecom service providers. With telecom providers expected to benefit greatly from this contiguous spectrum block, forthcoming auctions are expected to draw more interest from both commercial and state-run carriers looking to improve their service offerings and spectrum portfolios.