Idea launches operations in Mumbai, plans to invest Rs 800 crore

Aditya Birla group mobile telephone operator Idea Cellular today launched operations in Mumbai circle, making its foray into the most lucrative telecom circle in the country. The GSM service provider intends to invest around Rs 800 crore during the current financial year for its operations.

“Mumbai is the commercial capital of the country and merits world class mobile services. The Mumbai launch bolsters our position as a leading telecom player in the country,” announcing the launch Aditya Birla Group Chairman Kumar Mangalam Birla said.

The company will invest around Rs 800 crore in Mumbai circle alone, of which around Rs 600 crore has been paid as telecom licence fee. The remaining investments would be made to develop the network and infrastructure in the circle.

The entry into the Mumbai circle will result in the company being able to cover 70 per cent of the total mobile base in the country. Idea Cellular, which acquired GSM major Spice Communications that has operations in Punjab and Karnataka circles, expects to increase the coverage to 90 per cent when it launches operations in these two circles, he added.

According to Idea Cellular Managing Director Sanjeev Aga the company is looking at roping in 20 per cent of the new subscriber additions in Mumbai. The city adds around 3.5 lakh subscribers every month.

Idea Cellular has already set up a 3G ready network in the country, and will be rolling out the services with a slew of offerings and value added services (VAS). These include AMR-FR technologies that provide whisper clear audio clarity, while the company has also rolled out 60 `My Idea’ service centres.

The VAS include providing pre- and post-paid services on a single SIM, Common User Group (CUG) services, night-pack vouchers and full value recharges on certain vouchers. The company is also providing data cards at Rs 2,850 per month. 

The company has already set up 1,000 BTSes in the city and its network has capacity to support 1.5 million users.