We are less sanguine about the availability of 4G spectrum, particularly at reasonable prices. Idea believes it has sufficient spectrum for coverage and capacity to meet the data demand in the current phase of data growth. Further, it believes spectrum will be abundantly available in the medium term, especially from the harmonisation exercise in 1800Mhz that is currently underway. This should necessitate the government to lower the prices in future.
Idea estimates of spectrum availability in 1800Mhz, which is a key 4G band. We note that TRAI (the regulator) in its last report only indicated sporadic availability of spectrum in the 1800MHz band. Idea expects significant availability of spectrum in the 1800Mhz band in the medium term and intends to buy spectrum largely on a 'just-in-time' basis. Idea is betting on Renewal of 4.4 Mhz administratively allocated spectrum in the past and spectrum made available by harmonization of bands which is highly risky in a corrupt nation like India.
