Bharti Airtel is strategically redefining its spectrum portfolio as it gears up for the 5G revolution in India. The company plans to refarm its mid-band spectrum, specifically airwaves in the 1800 MHz and 2100 MHz range, to cater to the growing number of 5G-enabled devices in the market. This calculated move reflects Airtel’s commitment to delivering optimal network experiences to its customers while optimizing costs.
Growing 5G Device Base
Currently, approximately 10-12% of smart devices in the market are 5G-enabled. As this percentage is projected to rise to 25-30% in the coming years, Airtel plans to capitalize on this trend by refarming its mid-band spectrum for 5G services. This spectrum reallocation will enhance Airtel’s ability to provide efficient and high-quality 5G connectivity to its expanding user base.
Strategic Decision on 700 MHz Spectrum
Airtel’s approach is strategically calculated, as the company has decided not to pursue the 700 MHz spectrum. There are multiple factors influencing this decision. The cost of acquiring the 700 MHz spectrum is significantly high, and Airtel’s existing spectrum holdings are already well-positioned to achieve its 5G objectives. Consequently, investing in the 700 MHz spectrum would not necessarily yield substantial additional benefits for the company or its network infrastructure.
Focus on Cost-Efficiency and Network Enhancement
Airtel’s strategy revolves around acquiring spectrum in smaller increments to bolster its existing holdings in specific circles where its current spectrum allocation is expiring. This targeted approach not only ensures a cost-effective strategy but also empowers Airtel to provide robust and reliable networks to its user base. This aligns with the company’s commitment to delivering high-quality services while optimizing operational expenses.
Upcoming Spectrum Auction
The Department of Telecommunications (DoT) has set the stage for the next spectrum auction, expected to take place in the calendar year 2024. Airtel’s spectrum acquisition strategy will likely play a pivotal role in the upcoming auction as the company continues to strengthen its spectrum portfolio strategically.
Airtel’s 5G Deployment Approach
Bharti Airtel has chosen to deploy 5G in a non-standalone (NSA) mode, leveraging its existing 4G networks. This approach enables Airtel to ensure widespread coverage and an enhanced network experience for its customers. The company highlights that the 700 MHz spectrum doesn’t significantly improve uplink speeds compared to bands like 800 MHz or 900 MHz. Consequently, prioritizing the expensive 700 MHz spectrum solely for extended coverage doesn’t align with Airtel’s efficient network enhancement strategy.
Airtel’s decision to refarm its mid-band spectrum for 5G services reflects its commitment to delivering optimal network experiences while optimizing costs. By strategically navigating the evolving landscape of 5G-enabled devices and making calculated choices regarding spectrum acquisition, Airtel is poised to position itself as a frontrunner in India’s 5G journey.
