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India’s number two operator reportedly looking to bolster its spectrum before upcoming auction.
Vodafone India is favourite in the running to acquire local rival Telenor, it emerged on Wednesday.
Sources cited in an Economic Times report claimed that the country’s second-largest mobile operator is looking at Telenor as a means of bolstering its spectrum holdings to compete more effectively against market leader Bharti Airtel and Reliance Jio, which plans to launch nationwide 4G services this year.
According to the report, Vodafone is considering acquiring Telenor in whole, or just its spectrum, which it holds in seven telecom circles.
India’s government recently gave the go-ahead to auction spectrum across the 700 MHz, 800 MHz, 1800 MHz, 2.1 GHz, 2.3 GHz and 2.5 GHz bands; the process is expected to begin in the next couple of months.
However, the ET’s sources said Vodafone does not want to wait that long.
"The wait till [the] auction will further delay deployment for Vodafone. The markets covered by Telenor are populous markets with significant ground for Vodafone to gain," said one person, in the report.
Norway-based Telenor in April hinted it might consider exiting India unless it can secure additional spectrum.
At the time, CEO Sigve Brekke said his company would have to "consider other alternatives" if acquiring spectrum turns out not to be possible.
Based on those comments, if Vodafone is indeed interested in Telenor, it might still have to wait until after the auction before launching a bid.
