Idea Cellular today said it would launch 4G services on FD-LTE technology in 8 of its key revenue markets, at an appropriate juncture.
This apart, Idea Cellular will launch 3G in Delhi in the 900 MHz band.
In 2010, Idea Cellular did not focus much on BWA spectrum auction which could have enabled the Aditya Birla group company to launch 4G on TD-LTE technology.
Today’s spectrum auction ensured that Idea Cellular will have 2G, 3G and 4G presence in 6 telecom circles in India.
Idea Cellular has bagged 65.2 MHz of spectrum for a price of Rs 10,400 crore. For comparison, Bharti Airtel will spend around Rs 18,530 crore and Vodafone India will invest around Rs 19,600 crore to buy their respective spectrum.
The company said the 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 installments after the first two year moratorium including interest at 10 percent.
In 8 of its leadership markets covering 64 percent of revenues, Idea can 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. It can also deploy the 3G services with 5 MHz on the 900 MHz band in Delhi.
With Delhi metro in the 900 MHz band, Idea Cellular now has the ability to extend its 3G services to 12 circles covering nearly 79 percent of its gross revenues (Idea Standalone Gross Revenue is Rs 255,581 million in calendar year 2013).
The company has acquired additional top up spectrum in 1800 MHz in Mumbai metro and Madhya Pradesh & Chhattisgarh – 2 MHz each, Maharashtra – 4 MHz, Punjab – 3 MHz, Gujarat – 1.6 MHz, Andhra Pradesh and Haryana – 1 MHz each, and Delhi – 0.6 MHz.
With this additional spectrum auction win, Idea’s 6 strategic markets of Kerala, Andhra Pradesh, Maharashtra & Goa, Madhya Pradesh & Chhattisgarh, Punjab, and Haryana, representing 53 percent of its revenues, will experience all three mobility technologies – GSM, 3G, and 4G services in the coming years.