Airtel to Expand 5G in Rural Areas with Cost-Effective Spectrum Strategy: Report

Airtel to Expand 5G Reach in Rural Areas with Cost-Effective Spectrum Strategy: Report
Bharti Airtel has reportedly embarked on refarming its 4G spectrum to boost 5G coverage and capacity in rural (B&C) circles, anticipating a surge in demand in 2025. The telco plans to utilise 2300 MHz, 1800 MHz, and 900 MHz bands for this initiative, aiming to optimise both costs and spectrum resources as part of its spectrum resources optimisation strategy, ET reported, citing sources.

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Airtel’s 5G Strategy for Rural Areas

In a cost-saving move, Airtel is reportedly upgrading existing 4G base stations with software to emit 5G signals, significantly reducing costs. Converting a 4G base station into a 5G one costs USD 1,000-1,500, compared to USD 20,000 for a new 5G station using C-band spectrum. The company’s largest spectrum holdings are in the 2300 MHz and 1800 MHz frequencies.

“The Sunil Mittal-led telco is also going for mass software upgrades to convert its maze of 4G base stations in these markets to emit 5G signals at virtually 1/13th-1/20th of the cost of investing in new 5G base stations running on 3.5 GHz airwaves, known as C-band 5G spectrum,” the report cited people familiar with the matter as saying.

“Airtel is looking to optimise costs and airwave resources by selectively beefing up 5G network capacity and coverage in the B&C circles by refarming select 4G mid-bands where it has the fattest spectrum holdings,” the report cited one of the people as saying.