Idea Cellular jumped 3.84% to Rs 136.50 at 10:15 IST on BSE after the firm said that its winning a total of 65.2 MHz of spectrum gives it necessary impetus to expand the network in Delhi to 3G on 900 MHz, and launch 4G in 8 of its key revenue markets
The announcement was made after market hours on Thursday, 13 February 2014.
Meanwhile, the S&P BSE Sensex was up 23.74 points or 0.12% at 20,217.09.
On BSE, so far 2.75 lakh shares were traded in the counter as against average daily volume of 9.86 lakh shares in the past two weeks.
The stock hit a high of Rs 139.15 and a low of Rs 132.50 so far during the day.
Idea Cellular said that the provisional results of the auction of 900 MHz and 1800 MHz spectrum were announced on Thursday, subject to approval by the Government. Idea Cellular, India's third largest mobile operator, in winning a total of 65.2 MHz of spectrum, gets 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, the company said.
In 8 of its leadership markets covering 64% 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, besides the right to deploy the 3G services with 5 MHz on the 900 MHz band in the strategically significant metro market of Delhi, Idea Cellular said in a statement.
Idea Cellular said that with Delhi metro 900 MHz, the company now has the ability to extend its 3G services to 12 circles covering nearly 79% of its gross revenues (Idea Standalone Gross Revenue is Rs 25558.1 crore in calendar year 2013). 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, Idea Cellular said in a statement.
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% of its revenues, will seamlessly experience all three Mobility technologies - GSM, 3G, and 4G services in the coming years, Idea Cellular said in a statement.
Idea Cellular said that the total accepted bid value is approximately Rs 10400 crore at Rs 160 crore/MHz, primarily for its 9 strategic service areas. This bid price will be covered within less than two years in EBITDA terms, based on the current EBITDA trends of these 9 strategic markets, the company said. After the initial payment of approximately Rs 3100 crore, the balance amount will be paid in ten equal installments after the first two year moratorium including interest at the rate of 10%, Idea Cellular said in a statement.
Idea Cellular's consolidated net profit surged 104.6% to Rs 467.73 crore on 18.6% growth in net sales to Rs 6607.70 crore in Q3 December 2013 over Q3 December 2012.
Idea Cellular, part of the Aditya Birla Group, is the third largest listed wireless operator in India.
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