Videocon Telecom to bid for 2MHz additional spectrum at upcoming auction

The telecommunication arm of the $4 billion Videocon Group, Videocon Telecom will bid for an additional 2 megahertz (MHz) of spectrum each for its Chhattisgarh, Madhya Pradesh and Punjab telecom circles at the upcoming auction, a company statement said in New Delhi on Wednesday.

At present, it has 4.4MHz of spectrum in Punjab and 5MHz of spectrum in Madhya Pradesh-Chhattisgarh telecom circles.

The telecom operator is already nearing peak capacity utilisation in some pockets or cities, and considering the long term business perspective, the option of acquiring additional spectrum promises to be more effective, according to Videocon Telecom.

"Telecom is a long term business and any investment in this sector has to be looked at from a long term perspective. We have been contemplating the need for additional spectrum in Punjab and Madhya Pradesh & Chhattisgarh telecom circles since there is always a trade-off between deploying additional sites and acquiring additional spectrum," Arvind Bali, director and chief executive officer of Videocon Telecom said.

"However, considering our growth plans, business projections and the fact that we want to give the best experience to our customers, we are planning to acquire additional spectrum for Punjab and Madhya Pradesh & Chhattisgarh circles," Bali said.

"Further, the incremental capacity created by the additional 2MHz spectrum will be at least two times the existing capacity given trunking efficiency. Also, the planned 2MHz additional spectrum in Punjab telecom circle being a liberalized one, will give us the option to offer 4G LTE narrowband service there," he said.

The company also said it is soon planning to roll out 4G LTE services.