Indus Towers IPO in 2011-12: Idea Cellular MD

Mobile tower firm Indus Towers is expected to come out with an initial public offer (IPO) sometime in the next fiscal (2011-12), Idea Cellular Managing Director Sanjeev Aga today said.

Indus Tower is one of the largest mobile tower companies in India, in which Vodafone Essar and the Bharti Group own 42 per cent each in the joint venture, while Idea Cellular holds 16 per cent.

"There is no pressing need. After the legal formation is completed, it will happen. It is expected by FY12," Aga told reporters on the sidelines of its quarterly results announcement here.

Top mobile operators Bharti Airtel, Vodafone Essar and Idea Cellular, in late 2007, had decided to pool their resources and had hived off their towers into an independent firm, Indus Towers, with over one lakh towers.

Idea Cellular today said its consolidated net profit stood at Rs 243.05 crore for the third quarter ended December 31, 2010.

Talking about 3G services, Aga said, "It will happen in the next few months."

With the delay in rollout of 3G services, the company has also reduced its capex guidance for the ongoing fiscal.

"The capex guidance had been increased to Rs 4,000 crore on expectation of 3G rollout in December-January. The rollout is now taking a while for which we have reduced the capex guidance," he added.

Third generation (3G) services allows users enjoy multimedia services, high speed mobile broadband and internet access with the ability to view videos on mobile phone, make video calls, watch live TV, access high speed internet and enjoy live streaming.

While its competitor Airtel has announced the launch of its 3G services in Karnataka today, Vodafone is yet to launch its 3G services. State-run telcos BSNL and MTNL are currently offering 3G services, apart from private players Tata Teleservices and Reliance Communications.