Vodafone India, the country’s second largest telco, said that it has enough funds to participate in the auction, as it looks to buy more spectrum to expand its 4G network, according to Economic Times.
“On one hand we are generating a healthy cash flow, and on the other we are actually looking at a healthy parent. Vodafone Group has been infusing equity in the past, we are very comfortable with the situation. We will be in a situation that we can participate in the auction where we want to,” Vodafone India’s Chief Financial Officer Thomas Reisten told the publication.
The company is aggressively focusing on data growth, and 65% of its yearly capital expenditure is targeted towards that growth, which means it will be bolstering its network, along with spectrum acquisition. Vodafone India plans to expand its 4G services to 1,000 towns across 9 circles shortly.
In the January-March quarter, Vodafone saw an increase in its realised rates, or its effective revenue per unit sold, as pricing hardened. The company's services revenue for FY16 increased 5% on year, its lowest growth in recent years.
Vodafone’s average revenue per user (ARPU) and average revenue per minute (ARPM) fell by 3.4% and 1.9% respectively on year, dragged by a weaker voice business where ARPM fell by 10.9%.