Idea Cellular’s growing market share in Karnataka will further get strengthened by its ability to launch 4G while enhancing customer experience by growing the voice business, as a result of the spectrum win.
In the recently concluded spectrum auction, Idea Cellular, India’s 3rd largest mobile operator won a total of 65.2 MHz of spectrum under the 900 MHz and 1800 MHz bands. This will now give it the impetus to expand the network and launch 4G in 8 of its key revenue markets, covering 64% of revenues at an appropriate juncture. Idea now has the ability to launch 4G services in Kerala with 10 MHz, and in Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana, and North East, using 5 MHz of contiguous 1800 MHz spectrum won in each of these service areas.
Idea has also acquired the ability to deploy 3G services in the strategically significant metro market of Delhi by winning 5 MHz in the 900 MHz band. With Delhi metro 900 MHz, Idea now has the ability to extend its 3G services to 12 circles covering nearly 79% of its gross revenues (Idea Standalone Gross Revenue is Rs. 255,581 million in calendar year 2013).
It also acquired additional top up spectrum in 1800 MHz in Mumbai metro and Madhya Pradesh & Chhattisgarh – 2 MHz each, Maharashtra & Goa – 4 MHz, Punjab – 3 MHz, Gujarat – 1.6 MHz, Andhra Pradesh and Haryana – 1 MHz each, and Delhi – 0.6 MHz.
The total accepted bid value is approx. Rs. 10,400 crore at Rs. 160 crore/MHz, primarily for its 9 strategic service areas. This bid price will be covered within less than two years in EBITDA terms, based on the current EBITDA trends of these 9 strategic markets. After the initial payment of approx. Rs. 3,100 crore, the balance amount will be paid in ten equal instalments after the first two year moratorium including interest @ 10%.
About IDEA CellularIDEA Cellular is India’s 3rd largest national mobile operator, with more than 130 million subscribers. With traffic in excess of 1.5 billion minutes a day, Idea ranks among the Top 10 country operators in the world. Using the latest in technology, Idea provides world-class service delivery through the most extensive network of customer touch points. Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.
IDEA Cellular is an Aditya Birla Group Company, India's first truly multinational corporation. The Group ranks Number 4 globally and Number 1 in the Asia Pacific in the 2011 Top Companies for Leaders (TCFL) study conducted by Aon Hewitt, Fortune (the Global Business Magazine) and the RBL Group. It operates in 36 countries, and is anchored by more than 136,000 employees belonging to 42 nationalities. More information on Idea Cellular is available at www.ideacellular.com and on the Aditya Birla Group at www.adityabirla.com
