February’s auction: Spectrum of destruction

If telcos Bharti Airtel and Vodafone have bid aggressively not just to retain part of their 900 MHz spectrum, but have also bought significant amounts of 1800 MHz spectrum, the reason goes beyond the need to protect their existing customer base. Since 5 MHz of 900 MHz spectrum is the minimum size required for offering data services, both have bid for this amount in Delhi—they have also bid for 7-8 MHz in the 1800 MHz band to migrate their existing voice customers, leaving the 900 MHz band free for offering pure data services.

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