Idea to spend Rs 3,500 cr in networks; 3G in Delhi by 2015

Telecom operator Idea Cellular today said that it will invest Rs 3,500 crore in building network and launching 3G service in Delhi next year.
"The capex guidance for FY 2015 stands at Rs 35 billion, excluding any spectrum related payments," Idea Cellular said.
Idea rolled out 3,178 2G cell sites and 1,477 3G cell sites during the the fourth quarter of the last fiscal, taking the network site count for 2G to 104,778 and 21,381 for 3G sites.
In the spectrum auction held in February, the company won 5 megahertz of spectrum in 900 MHz band in Delhi service area which it will use to launch 3G services in the national capital next year.

"The company intends to launch 3G services in Delhi in calendar year 2015 on the recently acquired 900 MHz spectrum. Post Delhi 3G service launch, the 3G foot-print of Idea will cover about 80 per cent of its current revenue and about 57 per cent of national mobile industry revenue," a company statement said.
At present, Idea has permit for 3G services in 11 service areas - Maharashtra, Gujarat, Andhra Pradesh, Kerala, Punjab, Haryana, Uttar Pradesh East and West, Jammu and Kashmir, Madhya Pradesh and Himachal Pradesh.

Idea recently got approval to start 3G services in Punjab.
The company also won 1800 MHz spectrum, widely known as 2G spectrum, in 8 service areas along with additional GSM spectrum in 7 service areas.

The company has plans to use 1800 Mhz spectrum for 4G services.
Idea said that with total spectrum holding, it now has capability to launch 4G services in 8 service areas -- Kerala (10MHz), Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana and North East (5 MHz in each)
"The actual timing of 4G services launch would be based on the consumer demand, technology stabilisation and competitors move. These 8 service areas represent about 58.1 per cent of Idea revenue and an opportunity of upgrade to LTE service to existing 74.7 million Idea subscribers," the company said.

Idea Cellular today posted over 91 per cent jump in consolidated net profit at Rs 589.77 crore for the last quarter of 2013-14 on the back of expansion in both voice minutes and mobile data volume.
The company had posted a profit after tax of Rs 308.18 crore for the same period a year ago.