Chennai: Idea Cellular Limited, which has plans to expand operations in other telecom circles, will customise packages that will suit the market.
According to Pradeep Shrivastava, chief marketing officer, the needs of subscribers in low mobile penetration areas are different from that of cities where the cell phone penetration is high. "We will take this into account and tailor our packages."
Launching its services in Himachal Pradesh, Rajasthan and Uttar Pradesh (East) recently, Idea Cellular will soon enter Bihar and Mumbai and has drawn up plans to expand to other parts as well. "Tamil Nadu and Karnataka are high on our agenda. We are waiting for the licence," he added.
According to him the company has ramped up 2.08 lakh subscribers in Himachal Pradesh, Rajasthan and Uttar Pradesh (East).
Speaking about the equipment vendor for Mumbai and Bihar he said that the company is yet to finalise the matter. Idea Cellular has entered into strategic deal with three equipment vendors - Ericsson, Nokia and Siemens- and one of them will get the contract for the Mumbai circle.
The company would set up 1,597 cell sites in Mumbai. For expanding its services in Rajasthan, Himachal Pradesh and Uttar Pradesh (East) the company will set up 105, 810 and 1,247 cell sites respectively.
Idea Cellular has a total of 8,600 cell sites till date of which 45 are shared. "Sharing of cell sites results in reduction in capital expenditure," he remarked.
According to him the company, which operates in 11 circles, has a subscriber base of 12.44 million of which 96 per cent are prepaid and 4 per cent post paid. While post-paid schemes are more beneficial to the companies, Shrivastava says, "Prepaid has several advantages like zero collection rates. Further the revenue per minute is higher for us." The company's average revenue per user (ARPU) through prepaid schemes is Rs279, while from post paid tariffs it is Rs679. The blended ARPU is Rs338.
Meanwhile Idea Cellular is coming out with a premium public issue aggregating Rs2,125 crore of equity shares of Rs10 each for cash. The price band has been fixed between Rs65 and Rs75 per share. The issue opens on February 12, 2007 and closes on February 15, 2007.