Videocon Telecom plans to bid for additional 2 Mhz spectrum

Videocon Telecom will place bids for an additional 2 MHz spectrum each for the Punjab and Madhya Pradesh and Chhattisgarh telecom circles, a move that will enable it service a larger subscriber base.

The company currently holds 4.4 Mhz spectrum in Punjab and 5 Mhz spectrum in Madhya Pradesh & Chhattisgarh telecom circles.

The telco is nearing peak capacity utilisation in some pockets and given the fast-growing traffic, sees merit in acquiring additional spectrum instead of deploying more sites.

Further considering long-term business perspective, the option of acquiring additional spectrum promises to be more effective.

Videocon Telecom, which has a liberalised license in six of its seven license areas, will soon roll out 4G LTE services. The additional spectrum in Punjab telecom circle, being a liberalised one, will also give the operator the option to offer 4G services using the narrowband FDD technology in Punjab as well.

''Telecom is a long-term business and any investment in this sector has to be looked at from a long term perspective. We have been contemplating the need for additional spectrum in Punjab and Madhya Pradesh & Chhattisgarh telecom circles since there is always a trade-off between deploying additional sites and acquiring additional spectrum,'' said Arvind Bali, director and chief executive officer of Videocon Telecom.

''However, considering our growth plans, business projections and the fact that we want to give the best experience to our customers…,'' he said.

''Further, the incremental capacity created by the additional 2 MHz spectrum will be at least two times the existing capacity given 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,'' Bali added.