Vodafone group has decided to invest a colossal $7.2 Billion in India to tackle the competition created by Reliance Jio in 4G LTE market.
Sunil Sood, the chief executive of Vodafone India said: “The funds provided in the first half of this year will help Vodafone to continue expanding its network and investing in spectrums.”
A day before Vodafone’s announcement, BSNL, the state-owned company had launched its BB 249 plan to tackle Jio which resulted in increasing the pressure on other companies to cut down the network rates. Vodafone India is the second largest network carrier after Airtel in the Indian telecommunication market on the basis of the consumer base and network availability.
Since starting its operation in the year 2007 in India, this British group has grown at a rapid pace and today it boasts a consumer base of more than 200 Million. Now the network provider is also planning to list the company through an IPO (Initial Public Offer) in India which is expected to raise anything between 2-3 Billion Dollars.
An Airwave Carrier Auction is scheduled on 1st October and seven network carrier companies have applied for this auction, Vodafone being one of them.
Airtel is also ready to invest $9 Billion in India to face the competition.
Jio’s launch has fired up the competition in an already competitive telecommunication sector and now all we have to see is how this will impact the other players and proves profitable for the Indian consumers.