Telenor is weighing up the possibility of using its existing spectrum in India to skip straight from 2G to 4G, according to a report from The Economic Times (ET).
Uninor, Telenor’s Indian subsidiary, already holds 1.8GHz frequencies that might be used for 4G, provided its gets a unified licence (which allows spectrum to be used for whatever generation of mobile technology the operator wants).
“We are not there yet, but in the future we believe that this might be possible,” Hilde Tonne, executive VP and head of group industrial development at Telenor, told ET.
Rival Airtel has already launched 4G services in some cities using 2.3GHz, while Jio is expected to begin next year.
But if Uninor can avoid paying extra for 4G spectrum, analysts quoted in the report reckoned the Telenor subsidiary might be able to cut tariffs below those of bigger competitors and so trigger a price war.
“This may weaken the business case for bigger players who have 4G plans and airwaves for the next spurt in internet users,” said one.