14th Feb 2014 07:57
LONDON (Alliance News) - Vodafone Group PLC Friday said it had acquired mobile spectrum licenses in India for GBP1.9 billion, enabling it to roll out 4G services and bolster its 3G services in key cities like Mumbai and Delhi.
The company said its Indian unit was awarded spectrum licences in 11 telecom circles in the Indian government's 900 MHz and 1800 MHZ spectrum auction. It said it bought a total of 23MHz in the 900MHz band in Mumbai, Delhi and Kolkata and 49MHZ in the 1800MHz band in Mumbai, Delhi, Kolkata, Karnataka, Kerala, Gujarat, UP East, Rajasthan, Haryana, Andhra Pradesh and Punjab.
It will pay GBP540 million in the current financial year and the remainder in instalments starting in 2017.
"Vodafone India has established a strong platform for 4G data services by buying 1800MHz spectrum in Mumbai, Delhi, Kolkata, Karnataka and Kerala, which account for more than 50% of data revenues and are expected to drive the adoption of 4G as was the case after the introduction of 3G services in 2010," the company said in a statement.
"Vodafone India also maintained its overall holdings of 900 MHz spectrum in Delhi, Mumbai and Kolkata, and purchased 1800 MHz spectrum in four circles where its licences are due for extension in 2015," it added.
Vodafone had pledged to spend a chunk of the USD130 billion it got for selling its stake in Verizon Wireless late last year on bolstering its 3G and 4G networks in key regions. In Africa, the Middle East and Asia-Pacific region, Vodafone has said it will invest GBP1.5 billion to extend 3G coverage across major cities and key regions and establish a fibre optic network.
Vodafone India has over 160 million customers, with the number of mobile internet users increasing 38% to 45.7 million in its most recent quarter. Data usage is also growing strongly.
By Steve McGrath; [email protected]; @SteveMcGrath1
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