Idea to invest Rs 150 cr in Gujarat

Subscriber base up to 4.57 lakh in June 2004

Idea Cellular Ltd will invest over Rs 150 crore to expand its network in the state. It plans to add new switches, cell sites and strengthen its network in semi urban and rural parts of Gujarat.

The company has a subscriber base of over 4.57 lakh in the state. It also plans to double its subscriber base to the one-million-mark in the 12-18 months. The only cellular subscriber in the state to have touched the one million mark is Hutch.

"We have already covered all the districts in the state, including 170 towns. Idea intends to invest Rs 150 crore this year for expanding its network. This is in addition to the Rs 150 crore-plus invested last fiscal," said Vikram Mehmi, chief executive officer, Idea Cellular Ltd.

The Idea CEO added that Idea's subscriber base should see a 75 to 100 per cent rise in the next 12 to 18 months.

"Besides offering excellent coverage across the state, Idea is set to announce a host of other features that are currently not available to Idea customers in Gujarat. That will drive our subscriber figures," said Mehmi.

According to Cellular Operator Association of India (COAI) figures for June 2004, Idea has a subscriber share of over 20 per cent of the GSM cellular market in Gujarat. Its base stood at 4,57,564, up from 4,45,633 in May 2004.

Commenting on the value added services and new tariff plans that the company has introduced, Mehmi said Idea has attempted to remove the distinction between calling from a fixed phone line and a cellular connection.

"This is where I believe we have an edge in the Gujarat market and it now boils down to the number of new innovative and customer friendly services that we can provide," Mehmi stated.

Asked about the direction in which tariffs are headed, the Idea CEO said tariff are already at rock bottom and there does not seem to be any scope for any more lowering.

"If companies tariffs below the existing rates, it might even become a question of survival," said Mehmi. He however added that among other GSM cellular service providers in Gujarat, Idea has the lowest tariff levels.