G services: How Vodafone plan to take on Bharti Airtel, Reliance Jio

Vodafone India is drawing up strategies to take on Mukesh Ambani headed Reliance Jio Infocomm and current market leader Bharti Airtel.

MUMBAI: Vodafone India is drawing up strategies to take on Mukesh Ambani headed Reliance Jio Infocomm and current market leader Bharti Airtel, hoping to use spectrum garnered from the upcoming sale to deepen network coverage as well as deploy future technologies.

UK-based Vodafone Group Plc's India unit expects intense competition for spectrum in the 900 Mhz band in the important Delhi, Mumbai and Kolkata circles where its licences are ending later this year, Vishant Vora, company's technology director, told ET.

While the more efficient 900MHz bandwidth is particularly suited for indoor coverage - increasing its attractiveness for operators - India's No. 2 operator will also be interested in the 1800 MHz bandwidth which can later be used to offer fourth generation (4G) telecom services. Both Jio and Bharti have bandwidth in the 2300 Mhz to offer 4G services, but Vodafone doesn't. So far, Jio hasn't started its 4G services - which allows downloads almost 10 times faster than 3G, while Bharti Airtel offers it in a few cities.

Hefty earnest money deposits for auctions starting February 3 by Vodafone India, Bharti Airtel, Reliance Jio and Idea Cellular indicate that all four could be part of a major slugfest in Delhi and Mumbai circles in the 900 Mhz band, say analysts. Some key circles in 1800 Mhz band could also see keen fights for airwaves.

Vodafone holds 900 Mhz airwaves in the lucrative circles of Mumbai and Delhi, apart from Kolkata. Bharti Airtel holds this bandwidth in Delhi and Kolkata. Licences in all three circles are expiring in November this year, making the upcoming auctions critical for both Vodafone and Bharti Airtel to continue uninterrupted services.

Meanwhile, Vodafone's interest in airwaves in the 1800 MHz, unsuitable for 3G data, also stems from the fact that there is ample growth in 2G data and voice networks need decongestion, said Vora.

Still, unlike some other operators, Vodafone does not believe its bidding in the auction is contingent to getting continuous spectrum, though it would like for it to be in consecutive frequencies.

Around half of the spectrum being put up to sale in February is non-contiguous, and the department does not expect operators to withdraw bids or rejig airwave blocks to award continuous spectrum. As such, it depends on the operators' luck.

"Frequency planning for a network with fragmented airwaves is much harder. There is also wastage and higher chance of interference," Vora said. Inter-operator interference reduces calling experience significantly.

Moreover, Vora said having more airwaves will only partially offset the recent urban trend of banning telecom towers in areas. More bandwidth even in the 900 MHz band will not compensate for a missing site, where coverage will most likely be lost.

The company is in the process of converting its entire network to carry all voice calls on an internet platform. The project that will last at least two-three years brings Vodafone close to offering all services over internet, similar to what was proposed by Reliance Jio.

The conversion to internet protocol for even the voice network is economical, because in it rather than dedicating a line to a conversation, the network can eliminate time spent on call without conversation.

"People do not talk all the time. Typically, one person talks a third of the time, the other person a third, and there is silence for the remaining third," Vora said.

Over 30% of the Vodafone India's capital expenditure is being spent on the transport network, much of which is on converting to internet protocol, he said. While the company does not disclose capital expenditure in India, industry estimates suggest Vodafone spends Rs 5,500-6,000 crore each year.

"It will simplify running, improve our cost, improve operations and maintenance and add flexibility to the network. Of course costs are prohibitive, but over a period of time we expect most operators in India will follow this," Vora said. "Everyone's network is struggling to cope with data... Everybody will do that down that road."

Vodafone India is also working on convergence between its technology platforms and the network management itself. The move will enable Vodafone to offer an application through which customers will be able to customize plans on the fly
.

Hi guys If u like this post please leave a comment in comment box... comment box will top right of every post and bottom of every post. its useful for me give a better information.. check top of the blog there is menu bar in that go to comments i replied for u r comments because there is no direct option for reply for u r comments. if u want to give any suggestion in bottom of blog there is contact information option please leave a msgs with u r mail id sure i will get u.