Airtel Acquired 19800 MHz Spectrum and Set to Lead India’s 5G Revolution
Airtel has secured 5G spectrum for 20 years in this auction. The acquisition of this vast amount of spectrum strapped on to an already industry best existing pool of spectrum will mean that the company does not need to spend any material sum on spectrum for many years to come.
Bharti Airtel (Airtel) is set to lead India’s 5G revolution. The telecom company said that it has acquired 19,800 MHz spectrum by securing a pan India footprint of 3.5 GHz and 26 GHz bands. In addition, the company was able to selectively bolster mid-band spectrum. This massive spectrum bank was secured for a total consideration of Rs 43,084 cr in the latest spectrum auction conducted by the Department of Telecom, Government of India.
Airtel has secured 5G spectrum for 20 years in this auction. The acquisition of this vast amount of spectrum strapped on to an already industry best existing pool of spectrum will mean that the company does not need to spend any material sum on spectrum for many years to come. In addition, this spectrum acquisition has enabled Airtel to drastically reduce the payout towards spectrum usage charge (SUC) and eliminate the adverse SUC arbitrage compared to new entrants.
Airtel now has the widest mobile broadband footprint across the country making it well-positioned to usher in the 5G revolution in India. In the past year, Airtel has led the industry and spearheaded 5G technology in India testing several use cases with multiple partners at many locations. From demonstrating India’s first 5G experience over a live 4G network in Hyderabad to India’s first rural 5G trial to the first cloud gaming experience on 5G to the successful deployment of India’s first captive private network on the trial spectrum, Airtel has created and nurtured a vibrant ecosystem of partners and start-ups to support faster adoption of next-generation technologies.
Over the years, Airtel has been very astute in its competitive spectrum acquisition approach. It has assiduously accumulated the largest pool of low and mid band spectrum (Sub ghz/1800/2100/2300 bands) which can be used to provide the best 5G coverage while massive capacities in the 3.5 GHz and 26 GHz bands will allow Airtel to create 100X capacities at the least cost. This well thought out strategy for spectrum acquisition through auctions, M&A and trading has allowed Airtel to avoid the need for adding an expensive sub GHz band. This enables Airtel to meet all its objectives – the best 5G experience, 100x capacity enhancement and the most power-efficient solutions that will go towards meeting the ambitious ESG goals of the company. Even more importantly, this will provide Airtel an enduring competitive advantage for years to come in delivering the lowest total cost of ownership.
Airtel now plans to launch 5G services in every part of the country starting with key cities. The company is convinced that its higher-quality customer base will adopt 5G devices at a rapid pace in the country. In addition, Airtel’s strong presence in the Enterprise segment will allow for a slew of industrial use cases further strengthening Airtel’s leadership in the B2B market.
Gopal Vittal, M.D & CEO, Bharti Airtel said, “Airtel is delighted with the results of the 5G auction. This spectrum acquisition at the latest auction has been a part of a deliberate strategy to buy the best spectrum assets at a substantially lower relative cost compared to our competition. This will allow us to raise the bar on innovation and address the emerging needs of every discerning customer who demands the best experience in India. We are confident that we will be able to deliver the best 5G experience in India in terms of coverage, speeds and latency. This will allow us to change a lot of established paradigms for both our B2C and B2B customers. 5G technology is the revolution that can alter India’s manufacturing, services and several other sectors. We remain fully committed to the Government’s Digital India vision and will continue to do what is needed to ensure that India becomes a beacon for the world in terms of technology.”