We are just a few days away from the big airwave auction that is going to take place and now Vodafone has made a $7.2 billion cash injection to its Indian business. The $84 billion air wave auction is said to be a game turner and would actually decide that which of the telecom major in the country would prove to be the biggest and win.
The telecom sector in India when the big auction is about to begin
The telecom sector in India is highly competitive and most of the time is money-losing. Many of the players in this industry are left with huge debts as a result of the past auctions. The biggest airwave auction is just round the corner, this is said to be almost three times bigger than the past three auctions that were held. It could be said that Vodafone’s $ 7.2 billion investment in India has surly raised the stakes of the auction.
It is of no doubt that the entry of Reliance Jio has shaken up the telecom market in the country, with their investment of around $20 billion to provide their customers with free data and calls. And to give good competition to this it is very important that the others in the telecom industry start giving premium 4G services.
Vodafone is number 2 in the Indian telecom industry and Idea Cellular is the third, and they have their 4G services in just 22 telecom regions of India.
The auction that will take place will decide that who will ultimately win and make their data bets clears. Vodafone has surely made itself clear that they are set for the auction and are aiming at making the most out of it.
Image source: www.bbc.com
The auction of the premium 700 MHz band spectrum will take place on the 1st of October. Industry experts are still trying to analyze that how the bidding would go and how much money is spent by the different companies. This auction can be a turning point for the company that wins in this auction.
It would surely be interesting to see that how Bharti and Vodafone would bid and try to win the spectrum auction. Both the companies are not revealing anything about their plans for the auctions so one has to wait until the auction starts.
Even though Vodafone has reached its 200 million customer base but are still a little far from crossing the count of Bharti’s 257 million subscribers. With this upcoming auction Vodafone might just have a chance of quickly catching up the customer base of Bharti and Jio.