Data pricing will come down when Reliance Jio launches services and Intra?circle 3G roaming arrangements will lead to significant losses. This leads to a must?have 3G scenario for Airtel in remaining 9 circles. At reserve price Airtel will need Rs 51.5bn to complete pan?India 3G foot print on 2100MHz except Punjab. In Punjab 2100MHz is not available but 3 blocks of 900MHz are coming up for auction and in Bharti could acquire even 2 blocks (one for 2G and one for 3G) to complete its data footprint.
Airtel has 30,945 eligibility points which is more than sufficient to renew 900MHz spectrum, complete pan?India 3G foot print and even more.
Maharashtra and Gujarat are two critical large circles for Bharti where it does not have 900MHz or 2100MHz spectrum. In all likelihood it will buy 2100MHz in Gujarat and Maharashtra but it might also try for 900MHz which could dislodge Idea from its position of strength in these circles.
