Airtel to refarm 2100 MHz specturm to bolster 4G play

17/02/2019

new delhi: With 4G becoming the new battlefield for telecom players, the erstwhile market leader Airtel is looking to establish a strong foothold in the the data-centric mobile market.
To ensure a seamless network service, along with fast internet access through its 4G network, the Sunil Mittal-led player plans to refarm its 2100 MegaHertz (MHz) spectrum that it has in 20 circles. It is not yet clear whether the spectrum would be refarmed in all circles or select ones. It has already refarmed its 900 MHz spectrum in 10 out of 16 circles for 4G.
Spectrum refarming refers to the process of re-deploying spectrum from available users. It ensures efficient utilisation of the network capacity, increased coverage area and data speeds with the same amount of spectrum. And lower frequency bands ensure stronger network even when you are indoors, for example, inside malls, homes, offices or basements.
"Airtel's first strategy is to focus on high-value customers and that comes back to winning the 4G game. It will happen through a combination of the right propositions, the right content deals and price increases, where ever possible," a person aware of the development told on the condition of anonymity.
After 900 MHz, Airtel plans to refarm 2100 MHz from 3G to 4G services. "Only voice is being carried on 3G network currently. Once the traffic is moved from 3G to VoLTE, the vacated spectrum can be refarmed to bolster network capacities. Smooth and fast network experience is a big deal now with data consumption hitting the roof," the person quoted above said.
In the third quarter, the company launched minimum Arpu (average revenue per user) plan for its low-end users, which resulted in loss of 48.5 million subscribers, taking its total user base to 284 million. However, the telecom player added 11 million new 4G users with monthly data consumption per user reaching 10.5 GB.
"Airtel doesn't mind losing customers at the bottom in order to deliver a better experience for other users. This will pay off in terms of revenues. Airtel will be a more aspirational brand that will propel the shift from feature phones to smartphones more decisively in their favour," another person in the know of the Airtel's strategy said.
Airtel has started rolling out 4G on the 900 MHz band in 10 circles – Mumbai, Delhi, Karnataka, Andhra Pradesh, Kolkata, Punjab, Himachal Pradesh, North-East, Assam and Rajasthan. The company is working with its network partners Ericsson, Nokia, Huawei and ZTE to execute the deployment.
On Thursday, Airtel announced the upgradation of its 4G network in Mumbai with the deployment of LTE 900 technology that will significantly enhance the network experience for its smartphone users.
"With the high propagation and reach of the 900 MHz spectrum, Airtel smartphone customers will enjoy improved 4G availability inside buildings - homes, offices and malls. It will also result in wider availability of Airtel 4G across Mumbai. We will continue to invest aggressively in deployment of latest network technologies," Amit Tripathi, CEO – Mumbai, Bharti Airtel, said in a statement.
Airtel has also deployed advanced network technologies and tools such as pre-5G massive MIMO (multiple-input and multiple-output) and 4G advanced carrier aggregation to step up its high-speed network capacity and coverage.
Airtel's 4G subscriber base stands at 77 million, which is 27% of its total subscribers at 284 million.
The real battle is for 500 million mobile users (out of over 1 billion mobile users) who are not on the internet and still using the 2G network. "Airtel's strategy is to shift/upgrade its own 2G base to 4G, which will be critical to the growth of the company. The opportunity is huge, it needs to move steadily and cautiously," a telecom expert adds.
Though Airtel was the first telecom player to launch 4G in select circles, the adoption of 4G mobile services started when Reliance Jio entered the market, increasing the competition level in the sector manifold initially through its free services and now, with low tariffs.
This resulted in financials of incumbents taking a hit, forcing a consolidation spree where some players have exited the market, leaving just three private firms and a telecom public sector undertaking. Reliance Jio has a full LTE/4G network and all its 280 million users are on that

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