Vodafone planning on infrastructure sharing

Vodafone, the world's largest mobile operator, will spend $2 billion a year in India for expansion and infrastructure sharing instead of creating it or buying into others.

"Since the entry into India, our capital expenditure has doubled. We are now spending $2 billion a year," Arun Sarin, chief executive officer, Vodafone told reporters.

The company, which got a foothold in India earlier this year through the acquisition of Hutch, seeks to extend its coverage to 90% of the market (currently 50%) by bundling affordable handsets to reach out to the masses.

The company is adding 1.6 to 1.7 million customers a month. "Before we came to India, the company was adding 800,000 customers (per month)."

Sarin said Vodafone had no plans to buy into the infrastructure business of its erstwhile partner Bharti, but may share its facilities with peers so that companies need not put up their own towers everywhere.

"We are looking at ways to piggyback on each other's infrastructure to reach out to the masses quickly," Sarin said, adding: "It is completely unlikely that we would be buying into Bharti Infratel because we have our own infrastructure. There is no reason for us to buy."

On the burning issue of spectrum auction on which the industry is divided, he said it is a theoretical issue and up to the government to take a decision.