Business Daily from THE HINDU group of publications
Thursday, Dec 11, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Thursday, Dec 11, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Telecommunications Markets - Stocks
BL Research Bureau Idea Cellular’s pan-India expansion has received a boost with the allocation of 4.4 Mhz start-up spectrum for the Kolkata circle. This follows the allocation of spectrum to the company in Tamil Nadu (including Chennai). New entrants to the mobile telephony space such as Unitech have also been allotted start-up spectrum in 16 circles, with Kolkata being the most recent allocation. But Idea would have a clear edge over these players in the newer circles that it has launched services. It would leverage the benefit of being a stakeholder in the tower infrastructure company Indus Towers, and this can lead to a quicker rollout. Once mobile number portability is introduced, Idea may steal a march over new entrants and gain from any churn of subscribers from incumbent players. The other key advantage that Idea may possess is that new spectrum has been allocated in the 1800 MHz band. This makes capex rollout more expensive for new entrant such as Unitech. For Idea, except the newer circles, in as many as nine circles, it has spectrum allocated in the more efficient 900 MHz band. Idea would hope to replicate the robust subscriber addition that it has managed in Mumbai and Bihar where it has launched operation over the last three months. The company has managed to garner 18.5 per cent and 21 per cent of incremental market share in Mumbai and Bihar, respectively, despite Idea being the sixth or seventh operator in these states. More Stories on : Telecommunications | Stocks | Idea Cellular Ltd
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