Vodafone Idea (Vi) has been trying to put a brake on subscriber loss. But with an inferior network experience, VIL couldn't do anything but sit and watch its subscribers leave. However, having raised funds and getting more spectrum from the government can change things for the telco. Vi recently raised around Rs 24,000 crore in equity and has also acquired 50 MHz of additional spectrum in 11 circles. Vi has 17 priority circles, and the telco has acquired spectrum on the basis of serving these circles, where most of its customers live.
But will this translate into a better network experience is the question. Let's assess.
The telco renewed the 900 MHz spectrum in West Bengal and UP circles. Then, it also enhanced 900 MHz holding in 7 circles including Tamil Nadu, Andhra Pradesh, Punjab, Karnataka, UP East, Rajasthan, and Kolkata.
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But what's more important to note here is that Vi said this, "In circles of Andhra Pradesh, Tamil Nadu (excluding Chennai), Punjab and large parts of Karnataka and Uttar Pradesh (East), 4G on sub GHz 900 band will be offered for the first time which will result in better coverage and experience."
This means if indoor coverage has been a problem for Vi customers so far in these circles, it will improve in the coming days. So one problem of network coverage has been addressed by Vi in these circles. But what about network capacity?
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For capacity, the telco needed higher frequency bands. Thus, it got the 1800 MHz band in Madhya Pradesh and the 2500 MHz band in Bihar. In other priority circles, the telco already has enough spectrum to serve customers and capacity won't be an issue. If you really see, there are less than 130 million 4G customers in Vi's networks, and not all of them may be active.
Thus, the telco doesn't have to invest in capacity much, as much as it has to in coverage. The funds raised by Vi have been earmarked to go towards capex. As for 5G spectrum, the telco already has it in 17 circles.
Is this enough for better network experience?
Well, in circles where the telco has not invested in additional spectrum, it will be hard to know for sure whether the services will improve. However, for the circles where Vi has purchased spectrum, things should improve in the coming weeks and months.
