Airtel Sees Minimal Spectrum Spending Over the Next Two Years: CEO

Airtel Sees Minimal Spectrum Spending Over the Next Two Years: CEO
Bharti Airtel’s Managing Director and Chief Executive Officer, Gopal Vittal, clarified the company’s spectrum position and spending for at least the next two years during the recent earnings call for the second quarter ending on September 30, 2023. Gopal specifically highlighted Bharti Airtel‘s advantageous position, considering the substantial mid-band spectrum the telco holds.

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Gopal mentioned that with NSA (Non-Standalone), Airtel has an added advantage compared to other players in India on the mid-band spectrum. This allows Airtel to work with NSA, deliver a better experience, and reduce CAPEX (Capital Expenditure).

“We also believe that merely throwing more capex and installing more radios is not a race as radios are in an abundant supply and keep getting better with every version,” said Gopal.

Spectrum Renewal or Acquisition

In response to questions about acquiring spectrum in the 700 MHz (Sub-GHz band), Gopal clarified that the company had already made its position clear in the past. The company holds sub-GHz spectrum between 900 MHz and 850 MHz bands, with a bandwidth ranging from 5-10 MHz in every circle, and they have already made investments in this regard.

Gopal emphasised that having 5-10 MHz of spectrum primarily provides coverage rather than capacity. So, merely purchasing the 700 MHz spectrum at a cost of Rs 30,000 – 40,000 crores will provide the company with modest coverage but not capacity.

But the company already has sub-GHz spectrum, and Airtel holds a substantial amount of spectrum in the midband, anywhere between 20-30 MHz in all circles. According to Gopal, through NSA, the company is achieving 30 percent more coverage and greater reach, which provides an advantage for the company.