Vodafone India plans to buy spectrum from rivals
Vodafone India is open to purchase spectrum from rival mobile phone companies to create a 3G network across the country, the network provider's managing director Marten Pieters said.
Currently, the Indian arm of the British network provider owns 3G airwaves in just 11 circles in the country, though it has roaming agreements with Bharti Airtel and Idea Cellular to provide pan-India high-end data services.
But, the company has been restrained from adding new data subscribers in circles where it doesn't own 3G airwaves.
Eyeing on expanding the reach of its 3G services across the country, the company is now planning to buy spectrum from other network providers.
Pieters confirmed the plan in a recent interview, and added, "The purchase price Vodafone will settle for (3G spectrum) will be based on a commercial negotiation and depends on how desperately they (other telecom companies) are to sell."
Vodafone earned huge profits during the last fiscal. Its adjusted operating profit jumped from Rs 503 crore (£60 million) in FY2012 to Rs 1,854 crore (£221 million) in FY13. In the three months ended March 31, the company enjoyed a year-on-year increase of 7.2 per cent in revenue to Rs 9,276 crore. Earnings before interest, tax, depreciation & amortization jumped 24.5 per cent from Rs 8,549 crore in FY2012 to Rs 10,640 crore in FY2013.