In our view, there could be material delay in launch by Jio if the company decides to have an overlay of 800 MHz in all the circles even before it launches. We note that Jio currently has 800 MHz in 10 circles, with Mumbai being the most important amongst those. Jio intends to use RCOM?s 800 MHz in few circles via spectrum sharing/trading.
Kindly note that RCOM has contiguous 5 MHz of 800 MHz on a pan-India basis and has applied for liberalization of the spectrum in 8 circles (i.e., can launch LTE on this CDMA spectrum). RCOM intends to liberalize 11 more circles. If Jio needs to have access to 800 MHz on a pan-India basis before it launches, then we think that the launch may be further delayed by at least 6 months as (1) the regulator / government needs to approve RCOM?s liberalization; and (2) Jio would need to do testing with this band before launching.
