Reliance Jio invests less in spectrum auction than Airtel, Idea and Vodafone

Reliance Jio Infocomm has made less investment in the March 2015 spectrum auction compared with Idea Cellular, Vodafone India and Bharti Airtel.

Reliance JIO Infocomm has acquired 800 MHz spectrum and 1800 MHz bands. Additional spectrum in 1800 MHz band will enable Reliance Jio to offer 4G on FD-LTE technology.

According to TelecomLead.com’s initial estimate, Reliance Jio made less than Rs 24,000 crore investment during the spectrum auction. This indicates Mukesh Ambani and team was not aggressive in the auction space. During the 2014 spectrum auction, Reliance Jio Infocomm purchase spectrum for Rs 11,054 crore.

If Anil Ambani-promoted Reliance Communications was an aggressive purchaser of spectrum during the auction, the contribution of Reliance Jio Infocomm could be even worse.

Reliance Communications has acquired spectrum in 800 MHz band in Assam, Gujarat, Himachal Pradesh, Karnataka, Jammu & Kashmir, Kolkata, North East, Odisha, Punjab, Uttar Pradesh (West) and West Bengal.

In addition to 800 MHz spectrum, Reliance Communications has also acquired 900 MHz spectrum in Karnataka and Maharashtra.

Reliance Communications has also purchased spectrum in Haryana, Karnataka, North East and Punjab telecom circles.

The Sunil Mittal-promoted Bharti Airtel has purchased spectrum for nearly Rs 29,130 crore. It will strengthen focus on TD-LTE and FD-LTE technologies.

ALSO READ: Airtel to focus on both TD-LTE and FD-LTE after purchasing spectrum for Rs 29,130 crore

Vodafone India has acquired spectrum for Rs 25,810 crore.

ALSO READ: Vodafone to bet on 3G after buying spectrum for Rs 25,810 crore

The Kumar Mangalam Birla-promoted Idea Cellular has purchased spectrum for Rs 30,100 crore.

ALSO READ: Idea purchases spectrum for Rs 30,100 crore, plans 3G push

Considering the data available from Department of Telecommunications (DoT), the investment by the Mukesh Ambani-promoted Reliance Jio Infocomm in the spectrum auction is less than Rs 25,000 crore. Reliance Jio is yet to officially announce its spectrum purchase details.

Reliance Jio

According to DoT, Reliance JIO Infocomm has acquired 800 MHz spectrum in Assam, Bihar, Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Mumbai, North East, Odisha and Uttar Pradesh (East) circles.

The company has also acquired 1800 MHz spectrum in Haryana, Himachal Pradesh, Kolkata, Rajasthan, Tamil Nadu and Uttar Pradesh (East) circles. Reliance Jio Infocomm did not purchase spectrum in the 2100 MHz and 900 MHz bands.

The strategy of Reliance Jio Infocomm is to add 1800 MHz spectrum for launching 4G using the FD-LTE technology.

The Reliance Industries subsidiary already holds spectrum in 1800 MHz across 14 telecom circles and 2300 MHz across 22 circles. Reliance Jio Infocomm plans to provide seamless 4G services using FD-LTE on 1800 MHz and TD-LTE on 2300 MHz through an integrated ecosystem, according to its plans announced in 2014.

Baburajan K
[email protected]