Idea pays Rs 10,400 crore, bags Delhi and 8 circles

Idea Cellular, India’s 3rd largest mobile operator has spend Rs 10,400 crore in the recent spectrum auction for 900 MHz and 1800 MHz.

The company has bagged Delhi spectrum on 900 MHz, and 1800 MHz in 8 revenue markets- Kerala, Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Punjab, Haryana, and North East.

Idea Cellular has won a total of 65.2 MHz of spectrum, giving it the necessary impetus to expand the network in Delhi to 3G on 900 MHz and launch 4G in 8 of its key revenue markets, at an appropriate juncture.

In 8 of its leadership markets covering 64 percent of revenues, 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 percent of its gross revenues. 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 percent of its revenues, will seamlessly experience all three Mobility technologies – GSM, 3G, and 4G services in the coming years.

After the initial payment of approximately Rs 3,100 crore, the balance amount will be paid in ten equal instalments after the first two year moratorium including interest at the rate of 10 percent.

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