The Airtel Videocon Spectrum Deal has a negative impact for both Idea and Vodafone as they remained spectrum-constrained in key markets. Specifically, the lack of spectrum will constrain Idea in launching 4G services in these two markets where it was slated to buy the spectrum from Videocon. These markets account for 16-17% of Idea?s revenues. Further these are legacy markets for Idea, and hence likely to have above ?average profitability.
