3G spectrum on offer too little, says Bharti’s Mittal

As the third-generation spectrum auction draws to a close, India's leading telecom operator Bharti Airtel has given voice to the widespread belief that the minimal quantity of radio waves on offer would not be enough to bring about a broadband revolution in India.

"The government has provided one carrier for 3G, which would not be able to serve the demand of the country. In that way, I believe 3G would not be able to bring a broadband revolution," Bharti Enterprises' vice-chairman and managing director Rajan Bharti Mittal told reporters on the sidelines of a conference in Mumbai today. ''One carrier is not enough for broadband and would not be able to meet data demand."

Mittal, who also heads the group's retail ventures as group lead director, also said that Bharti would open 70 stores this fiscal. "We already set up a network in the North, Rajasthan, Madhya Pradesh and the NCR region. Now, we are planning to expand to either the West or the South. This fiscal, we will open 70 new stores and five mid-size stores," he said.

Mittal added, "We are very much on track with our expansion plan. The company has a capex (capital expenditure plan) of $200 million (Rs900 crore) and is opening 150 stores by 2016. We have plans to come up with hypermarkets of 50,000 sqft."

On its DTH business, Mittal said the company already has three million customers. "In the DTH business, we expect to continue a better growth. We are already doing well with 3-million customers," he said.

Separately in an interview to CNBC-TV18, Mittal said there is no further scope for price cuts in mobile telephony. "The industry has always had and will find its level. We have been very clear that there are too many players in this space. We are all hoping that let the best companies, who have been around and are performing, and new players, who are coming, get their share. But eventually some consolidation has to take place," he said.