Vodafone India to buy Tikona Digital Networks’ 4G spectrum: Report

Vodafone India is reportedly in talks with Tikona Digital Networks for buying its 4G spectrum. Industry experts believe that the company is planning to expand its high-speed broadband footprint ahead of Reliance Jio Infocomm's commercial launch and also, compete with Bharti Airtel and Idea Cellular.


Vodafone India is reportedly in talks with Tikona Digital Networks for buying its 4G spectrum. Industry experts believe that the company is planning to expand its high-speed broadband footprint ahead of Reliance Jio Infocomm's commercial launch and also, compete with Bharti Airtel and Idea Cellular.

According to a report by Economic Times, a person familiar with the matter has stated that Vodafone India has discussed "purchase of all" of Tikona's airwaves in the 2300 MHz band, which would help double the geographical 4G presence of the local unit of UK's Vodafone Group Plc. from its current five circles. Tikona had bought 2300 MHz (4G) spectrum in the 2010 auctions in Gujarat, Himachal Pradesh, UP (East), UP (West) and Rajasthan for over Rs 1,058 crore.

As Vodafone does not have 4G airwaves in these bands, it will deploy its high-speed broadband services over the 1800 MHz band across five circles of Delhi, Mumbai, Kolkata, Karnataka and Kerala. At the moment, there are only two players in the market, Reliance Jio and Bharti Airtel, which owns airwaves in the 2300 MHz band. In the past, Vodafone has also been in a negotiation with Videocon Mobiles, for buying its 4G bandwidth in the 1800 MHz band.

Recently, a study by a leading investment group had also brought to light how Reliance Jio’s 4G launch could affect the other players in the Indian market. The study conducted by CLSA claims that Reliance Jio Infocomm’s 4G launch could indeed pose problems for existing 4G providers like Bharti Airtel and Vodafone India’s market share.

Disclaimer: Reliance Jio is owned by Reliance Industries Limited, that also owns Network18 which publishes Firstpost.com (tech2)

 

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