India’s second largest carrier operator, Vodafone is in talks with Tikona Digital Networks for acquiring company’s 4G spectrum to expand its high-speed broadband service area in the nation. With the deal, Vodafone is also trying to give competition to other network providers like Bharti Airtel, Idea Cellular and Reliance Jio.
Tikona is a Mumbai based internet service provider. The company has bought its 2,300 MHz spectrum in 2010 auctions in Gujarat, Himachal Pradesh, UP (East), UP (West) and Rajasthan for over Rs 1,058 crore. According to one of the sources close to the matter, Vodafone has discussed “purchase of all” of Tikona’s airwaves in 2300 MHz band. This new deal will allow Vodafone to expand its 4G service area to double.
According to Economic Times, Tikona had previously planned to launch its 4G based broadband services to 30 cities in five telecom circles in the first half of 2016. Currently, only Bharti Airtel and Reliance Jio among the top telecom companies have 2300 MHz spectrum. Airtel has already launched its 4G services in more than 300 cities across India while Reliance Jio has recently launched its 4G services only for their employees. Full commercial roll out of Reliance Jio will happen in March next year.
Currently, Vodafone will roll out its super-fast broadband services over 1800 MHz band in five circles including Mumbai and Delhi, because it doesn’t have 2300 MHz bands till now. As of now, it has only rolled out its 4G services in 10 cities of Kerala. Currently, the airwave based ecosystem is growing very fast, as recently, Idea Cellular has bought Videocon Telecommunication’s spectrum in Gujarat and UP (West) for Rs. 3,310 Crore.