Videocon Telecom to bid for 2MHz spectrum

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

The telcom is already nearing peak capacity utilization in some pockets or cities and considering long-term business perspective, the option of acquiring additional spectrum promises to be more effective, the company feel.

“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 2 MHz spectrum will be at least two times the existing capacity given trunking efficiency. Also, the planned 2 Mhz 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 is soon planning to roll out 4G LTE services, it said.