Idea Cellular to launch 4G in 8 key circles including Maharashtra and Punjab

Idea Cellular is the latest operator to join 4G race.

Published Date
14 - Feb - 2014
| Last Updated
14 - Feb - 2014
Idea Cellular to launch 4G in 8 key circles including Maharashtra...

Idea Cellular has bagged 4G licence for its 8 circles - Kerala, Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana, and North East. The operator won a total 65.2 MHz of spectrum in the recently held auction of 900 MHz and 1800 MHz spectrum.

Idea will be launching 4G services in Kerala with 10MHz, while rest of the circles will be using 5 MHz of 1800 MHz spectrum won in each of these service areas. The operator also

Idea now also aims to launch 3G services in Delhi with 5 MHz on the 900 MHz band. Besides the right to deploy the 3G services with 5 MHz on the 900 MHz band in the strategically significant metro market of Delhi. The company has also 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% of its revenues, will seamlessly experience all three Mobility technologies - GSM, 3G, and 4G services in the coming years.

The total accepted bid value is approx. Rs. 10,400 crore at Rs. 160 crore/MHz, primarily for its 9 strategic service areas. This 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 instalments after the first two year moratorium including interest @ 10%.