Vodafone and Idea to Invest Rs 60,000 Crore Over the Next Three Years to Meet Data Demand

Vodafone India and Idea Cellular are gearing up for their merger completion, which is expected to be done by March 31, 2018. The merged entity will become India’s leading telecom operator and to keep up the name, Vodafone and Idea are reportedly planning to invest Rs 60,000 crore in infrastructure to meet the demand for data in the country. Both the companies are expecting that data usage in the country will grow by six-fold and reach 120 petabytes in the next three years, up from the current 20 petabytes now. India is currently the world’ second largest telecom market and first in terms of data usage.

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“The merged entity will invest about Rs 60,000 crore over a period of three years to ramp up its infrastructure to meet data demand, which will help it achieve expansion and vertical growth,” said a person to Livemint.

Also, both the companies are forced to invest more to upgrade the infrastructure and that too at a time where the industry is witnessing a serious revenue and profit stress. The merger will come into play, which is expected to be completed by March 31.

“Overlapping of the spectrum will be reversed, and with large spectrum chunks at disposal, rolling out faster data will be possible,” said the person to the publication. It is also expected that the companies will be expanding their capacity by six-seven times of the current capacity, which will provide high-speed data at 200-300 Mbps.

Leading telecom operator, Bharti Airtel is also said to be investing up to Rs 60,000 crore on infrastructure expansion under Project Leap. Already, Airtel is in the process of upgrading the network in various parts of the country. Reliance Jio has already invested a whopping s 1.5 trillion for setting the telecom infrastructure required to provide world-class services.

Also, Livemint approached both Vodafone and Idea Cellular in this regard, but Vodafone denied to comment, while Idea did not respond to the query.

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25 Comments on "Vodafone and Idea to Invest Rs 60,000 Crore Over the Next Three Years to Meet Data Demand"

 

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Android
February 27, 2018 1:13 am 1:13 AM

how to get service mode on lenovo phone ?

Telecomgeek
February 26, 2018 11:18 pm 11:18 PM

How about merging BSNL & MTNL and forming a tower subsidiary and raising some money selling stakes meanwhile maintaining majority share.It has some significant issues but Modi Government is known for bold steps with demonetization and GST.
70k towers!

Girish Gowda
February 27, 2018 2:47 pm 2:47 PM

BSNL is doing okay, but MTNL is a sick company. No need to merge and make BSNL sick again like it used to be before 3-4 years.

a2z
February 27, 2018 9:38 am 9:38 AM

The question is who ll purchase stake of sick psu,
First govt need to allote spectrum to BSNL so that it can indpendently launch 4g/5g..

Share aome worthful points by which BSNL may become profitable
Your reply was much appreciated …

Telecomgeek
February 27, 2018 1:26 pm 1:26 PM

If the business of tower co will be profitable then some company will definitely buy. They have to increase tenants. For the same 4G/5G rollout by different providers will be good opportunity. It has some problems like many towers resides in bsnl office itself. They have to change working structure which is making BSNL/MTNL a white elephant.

Priyansh Singh | Kashipur (Uttarakhand)
February 27, 2018 7:59 am 7:59 AM

Respected Telecom Minister said that we will not go through with the Merger Option. Will focus on both the companies working independently and maintain synergies between them.

Kaushik IMA
February 27, 2018 1:27 pm 1:27 PM

Useless. This is mainly because of political muscles exerted by CMD and boards of both companies.

Priyansh Singh | Kashipur (Uttarakhand)
February 27, 2018 4:38 pm 4:38 PM

Brother, whosoever it is. The Customers are at the Loss.

Telecomgeek
February 26, 2018 11:09 pm 11:09 PM

After consolidation gets over fully, a telecom circle will have 4 operators: Vodafone-Idea, Airtel, Jio and BSNL/MTNL.
Great!

Priyansh Singh | Kashipur (Uttarakhand)
February 27, 2018 7:59 am 7:59 AM

+1

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