Idea Cellular Ltd India’s Third Largest Wireless Company which participated in the Nov-2012 1800Mhz Spectrum Auction has said that they do not have any crunch for Spectrum to run the current Pan India 2G Voice & 3G Services in selective circles. Idea CEO Mr. Himansu Kapania addressing analysts said that,
Idea’s participation in upcoming 1800Mhz auctions will depend on the roadmap of spectrum availability (quantum & timing) for various bands viz 700-1800-2100- 2300 Mhz. The Co. does not foresee any disruption or large gaps in its existing spectrum holdings.
Improvement in pricing
Pricing improvement will be led by continued growth in data revenues, and deeper penetration over time, of new voice-vouchers that carry lower promotions. Himanshu highlighted that gap between headline voice-tariffs and effective realization is still wide, leaving scope for further rationalization of promotions over time.
Revenue Growth and Industry Outlook
The pricing repair in the industry remains intact. Volume slowdown is a near-term worry but is seen as seasonal (for 2Q), not structural. Idea expects the industry’s revenue growth to accelerate for next 2-3 years; the Co remains confident about outpacing industry growth. Revenue threat from overthe- top (OTT) applications is small.