Usually, however, this spending is spread over a considerable period of time, giving an operator chance to recover a part of its investment as deployment gathers momentum.


That is clearly not the case where 4G deployment in India is concerned. With new entrant Reliance Jio preparing to launch 4G services in March 2016, existing mobile operators are being forced to increase their spending to defend their turf.


Bharti Airtel Ltd. (Mumbai: BHARTIARTL), India's largest service provider, recently announced plans to spend about $9 billion over the next three years on transforming its networks. Idea Cellular Ltd., the number-three mobile operator, is also upping expenditure on network modernization and the launch of 4G services. It recently acquired 1800MHz spectrum from Videocon Telecommunications Ltd. , a smaller rival, in the two circles of Uttar Pradesh (West) and Gujarat. (See Bharti's $9B Network Splurge in India.)


"The recent M&A or spectrum trading activity is definitely driven by Telco’s' 4G game plan," says Deepak Kumar, the founder analyst at Business and Market, a research group. "These developments will act as a catalyst for 4G deployment in India."

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