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Mobile services in Delhi -- Idea Cellular awaiting spectrum allocation

Our Bureau

Each day lost due to delay was expected to cause a loss of about Rs 0.50 crore involving both interest costs and a combination of real and intangible costs as the project envisages an investment of about Rs 500 crore.

HYDERABAD, June 13

THE delay in spectrum allocation has held up the launch of Idea Cellular Ltd's mobile service in Delhi and the company expects to get over the hurdle soon to kick-start its services across the State.

The Chief Executive Officer of Idea Cellular, Mr Sanjeev Aga, said that the Delhi services operations were delicately placed as the crucial spectrum allocation from the Government was awaited. Each day lost due to delay was expected to cause a loss of about Rs 0.50 crore involving both interest costs and a combination of real and intangible costs as the project envisages an investment of about Rs 500 crore.

With regard to the sharing of network with other cellular operators in Andhra Pradesh, the Chief Operating Officer of Idea Cellular, Andhra Pradesh, Mr S.K. Subramanian, said that the company was in parleys with both AirTel and Hutchison for network sharing.

Mr Subramanian said, ``all over the country, most of the operators are looking at the possibility of sharing infrastructure to mutually benefit and also expand services faster. We are discussing with both AirTel and Hutchison.''

With regard to competition in the form of the entry of the fourth operator into other circles, Mr Aga said competition was not new. With competition customers will benefit with better services.

``The market is already extremely competitive, there is nothing new to bring to the market that is distinctly different. At a broad strategic level, issues like network reach, customer support mechanism are among those which help decide the service,'' Mr Aga said.

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