New Delhi

VODAFONE Group is spending US$1 billion to upgrade its network and retail stores in India as it counts on surging data use to drive growth in a market where the average customer spends about US$3 a month.

While the network is being upgraded for faster services, the rollout is being constrained by low revenue and limited wireless spectrum, Vodafone India chief executive Marten Pieters said. The company won't consider an initial public offering of the unit, India's second-largest wireless operator, until it has greater certainty about its access to airwaves.