Space department releases 20 MHz spectrum; Vodafone Idea 4G to get a boost: Report

Vodafone Idea’s spectrum in the 2500 MHz band was fragmented into two non-contiguous blocks—one of 20 MHz and another of 10 MHz.

The Department of Space has unveiled an additional 20 MHz of spectrum in the 2,500 MHz band, valued at Rs 11,000 crore, for mobility use, paving the way for future auctions, The Economic Times reported.

This is expected to offer a significant boost to the struggling telecom service provider Vodafone Idea (Vi), which has now received a contiguous block of spectrum, enhancing its ability to deliver higher-quality 4G services.

Previously, Vodafone Idea’s spectrum in the 2,500 MHz band was fragmented into two non-contiguous blocks—one of 20 MHz and another of 10 MHz. The latest release harmonises the frequencies, giving Vi a contiguous 30 MHz across the country, a long-sought improvement that should bolster its 4G network.

Officials noted that before this release, only 40 MHz of spectrum in the 2,500 MHz band was available for mobile operations, split into two non-contiguous blocks. With the new addition, the total spectrum available for mobile use in this band has increased to 60 MHz, with 40 MHz now contiguous.

“The company has been seeking contiguous spectrum for years, but due to the unavailability of spectrum, it was not possible until now,” an official told ET on condition of anonymity. Vi did not respond to ET's queries regarding the report. Moneycontrol could not independently verify the information.

In addition to Vodafone Idea, state-run Bharat Sanchar Nigam Ltd (BSNL) also uses the 2,500 MHz spectrum for its 4G services. Bharti Airtel and Reliance Jio use 40 MHz each in the 2,300 MHz band for their 4G needs.

The Department of Telecommunications (DoT) plans to auction the newly released spectrum in future sales. Industry experts suggest that both Vodafone Idea and BSNL may be interested in acquiring this additional 20 MHz to enhance their spectrum holdings.