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![bharti-idea-reliance-jio-keen-on-700-mhz-band-spectrum.jpg](/community/proxy.php?image=http%3A%2F%2Feconomictimes.indiatimes.com%2Fthumb%2Fmsid-22905520%2Cwidth-510%2Cresizemode-4%2Fbharti-idea-reliance-jio-keen-on-700-mhz-band-spectrum.jpg&hash=cc9fd74a0fcfa11539ed49b95c1f723e)
Top mobile phone companies Bharti Airtel, Idea Cellular and Reliance Jio Infocomm are eyeing auctions for bandwidth in the 700 MHz band expected in 2014, rather than in the 1800 MHz band, said three senior officials at incumbent Indian telecom operators.
Most telecom companies are currently stretched for cash, and hence would largely be on the sidelines during the upcoming 1800 MHz auctions, they said, asking not to be identified since these are competition sensitive strategies. They added that operators such as Bharti Airtel and Vodafone India, holding spectrum in the more expensive but efficient 900 Mhz, are hopeful of a court judgement allowing extensions in circles where their licences expire late 2014, thus relieving them from the prospects of bruising auctions in that band.
A well-placed official at Idea Cellular said the Aditya Birla group company is "keenly" awaiting availability of the 700 MHz band.
The company's primary focus has been rural India, with 60% of its revenue deriving from the region. A lower frequency band will help the company tap that space even better, he said, adding the company plans to simultaneously also launch basic internet connectivity in these areas using the lower frequency which offers better speed.
"Idea Cellular does not have 900 MHz in metro cities, and in anticipation of aggressive bidding in that frequency, may prefer to get 700 MHz in those places where it only has 1800 MHz," said a Mumbai-based analyst who asked not to be named.
It, however, isn't clear when the government would auction frequency in this most sought after band, especially with elections due in the first half of next year. The information and broadcasting ministry is scheduled to vacate by March 2014 spectrum in the band currently held mainly by state-run TV channel Doordarshan. Telecom minister Kapil Sibal earlier this year said auction of spectrum in the 700 MHz band would be in 2014. Some officials in the Department of Telecom believe that there could be a combined auction of all airwaves sometime next year.
Airwaves in the 700 MHz band is considered the most efficient of the three, consuming lesser capital expenditure needed to roll out services than through spectrum in the 900 MHz band and nearly a fifth of what is required for 1800 MHz for rural outlay comprising large stretches of uninhabited areas, analysts say.
Reliance Jio, a unit of Reliance Industries, is expected to join Bharti as among the avid bidders for the 700 MHz airwaves since both propose to offer 4G services for high speed data, for which the global standard has been developed in the band, one of the executives said.
Bharti Airtel, who has already launched 4G services in some areas in the 2300 MHz band, finds the distance covered by the frequency and the interruptions in signal make business difficult, said a company executive, asking not to be named.
Another senior official at Bharti said that there will hardly be any takers for spectrum in the 1800 MHz, but there is likely to be interest in the 700 MHz, when auctioned.
Operators say that the 700 MHz band requires half the number of towers in giving the same quality of service compared to 2300 MHz, thus reducing capital investment required for a roll out substantially.
BK Syngal, former chairman of VSNL and presently with telecom consultancy at Dua Associates, said that "Vodafone, Bharti, Idea will bid, Reliance is also likely to come out for this one."
Reliance Jio is reportedly testing services in the 2300 MHz band, but is yet to make a formal launch. It is the only operator to hold high speed internet service airwaves across every service area in India.
Official spokespeople at Reliance, Bharti, Idea and Vodafone India declined comment.
"With the data explosion expected, 700 MHz will be very valuable because frequencies close to the ground are most efficient for data traffic," said Hemant Joshi, partner at consulting firm Deloitte.
Bharti, Idea, Reliance Jio keen on 700-MHz band spectrum - The Economic Times