Idea Cellular an Aditya Birla Group Company, and India’s 3rd largest mobile operator, has informed that the provisional results of the auction of 900 MHz and 1800 MHz spectrum have been announced, subject to approval by the Government. Idea Cellular has won a total of 65.2 MHz of spectrum, which will enable them to expand the network in Delhi to 3G on 900 MHz, and launch 4G in 8 of its key revenue markets.
Idea now has the ability to launch 4G services in Kerala with 10 MHz, and in Maharashtra & Goa, Andhra Pradesh, Karnataka, Madhya Pradesh & Chhattisgarh, Punjab, Haryana, and North East, using 5 MHz of contiguous 1800 MHz spectrum won in each of these service areas.
With Delhi metro 900 MHz, Idea Cellular now has the ability to extend its 3G services to 12 circles covering nearly 79% of its gross revenues (Idea Standalone Gross Revenue is Rs. 255,581 million in calendar year 2013). 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. Idea will pay the initial payment of approx. Rs. 3,100 crore, and the balance amount will be paid in ten equal instalments after the first two year moratorium including interest @ 10%.