Vodafone Idea’s 5G entry faces risk of 5G being a marketing gimmick

New Delhi: Vodafone Idea Limited risks its 5G being viewed as more of a marketing gimmick, with investments largely done to prevent churn than create a better-quality network, BofA Securities said in a report.

VIL is the telco that bid for the least amount of 5G spectrum and acquired 5G spectrum in 17/16 circles across the 3300MHz/26GHz bands out of the 22 circles. It won 850 MHz in 3300 MHz band vs 2,200/2,440Mhz by Bharti/Jio and 5,350 MHz in 26 GHz vs 17,600/ 22,000Mhz by Bharti/Jio.

BofA Securities said given VIL’s weaker balance sheet, it believes that in the medium term, VIL could be at a disadvantage compared to Bharti/Jio in the 5G space given lack of adequate spectrum.