Vodafone Idea invests ₹3,510 cr in spectrum acquisition to boost 4G, 5G services

Shares of India’s third-largest telecom player opened on a firm note and rose further to hit a high of ₹18.40 per share on NSE, up by 2.1% over the previous close.

Around 48.49 crore shares of Vodafone Idea changed hands on NSE with a traded value of ₹883 crore. The total market valuation of the company stood at ₹1,23,132.30 crore.

The debt-ridden telecom player purchased frequencies worth ₹3,510 crore in the spectrum auction to improve its 4G network coverage and services.

Vodafone Idea informed the stock markets that it has fortified its competitive spectrum portfolio by strategically adding 900 MHz in key circles, which will improve network coverage and customer services.

The company acquired 50 MHz of spectrum across low-band and mid-band spectrum of 900 MHz, 1800 MHz and 2500 MHz in 11 circles. The company renewed the 900 MHz spectrum in UP West and West Bengal circles.

Vodafone Idea also increased its 900 MHz spectrum in seven circles of Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan, UP East and Kolkata.

The increased spectrum holding in 900 MHz will enable Vodafone Idea to enhance the indoor experience of its 4G customers in these circles.

Vodafone Idea acquired 1800 MHz spectrum in Madhya Pradesh and 2500 MHz spectrum in Bihar. The company already holds a sufficient and competitive 5G spectrum in its 17 priority circles.

“VIL has strategically acquired spectrum in the select markets to enhance and strengthen its overall spectrum portfolio,” VIL CEO Akshaya Moondra said.

The acquisition will enable the company to use dedicated sub-GHz spectrum towards advanced technologies, Moondra said.

Vodafone Idea plans to invest around ₹55,000 crore in the next three years to expand and strengthen 4G coverage. This year, the company raised around ₹24,000 crore through a follow-on public offer. It is in active discussions with lenders to raise debt funding of up to ₹25,000 crore.