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Reliance Jio Infocomm Reignites Battle Over 2G Spectrum, Ups Prices In Some Telecom Zones

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Reliance Jio Infocomm seems to have reignited the battle over the crucial second-generation spectrum after a lull of three-four days, pushing up prices in some telecom zones. Experts see this as a titfor-tat reaction after Bharti Airtel and Vodafone drove up prices for the CDMA band, which is being chased by the Mukesh Ambani-controlled company.

Last week, the price of 800 MHz, historically used for CDMA but which can carry 4G LTE-based services as well, crossed that of the traditional 2G spectrum of 900 MHz in circles such as Delhi, Madhya Pradesh and Mumbai.

Analysts tracking the ongoing sale of airwaves said that was because Airtel and Vodafone were trying to ensure that Jio’s cost of launching 4G services on the CDMA band was parallel to their costs of 3G using the 900 MHz band.

“In our view, this renewed aggression appears to be RJio signalling its displeasure at the 800 price growth,” JM Financial said in a note to investors. UBS expects Jio, as well as Airtel and Vodafone, to be active in the 800 MHz band. Original post at ET Telecom

Wahengbam Rorrkychand

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Website: http://www.blog.tonsetelecom.com

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