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Idea Cellular (commonly referred to as simply Idea, and stylised as !dea) is an Indian mobile network operator based in Mumbai, Maharashtra. Idea is a pan-India integrated GSM operator offering 2G, 3G and 4G mobile services. Idea is India’s List of mobile network operators of India (largest along with merged entity Vodafone) mobile operator by subscriber base. Idea has 193.96 million subscribers as of 31 July 2017.[3]

Idea Cellular Limited
Public
Traded as
Industry Telecommunications
Founded 1995; 22 years ago (1995)
Headquarters Mumbai, India[1]
Key people
Kumar Mangalam Birla (Chairman)
Products Mobile telephony, wireless broadband
Revenue 354 billion (US$5.5 billion) (2016)[2]
31.92 billion (US$500 million) (2015)
Members 193.96 million (July 2017)
Parent Aditya Birla Group, Axiata
Website www.ideacellular.com

Contents

HistoryEdit

During its inception in 1964, Aditya Birla Group, Tata Group and AT&T Wireless each held one-third equity in the company. Following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by the remaining two stakeholders equally.[4] Tata forayed into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider and in April 2006, Aditya Birla Group announced the acquisition of the 48.18% stake held by Tata Group at INR 40.51 a share amounting to INR 44.06 billion with 15% of the stake acquired by Aditya Birla Nuvo and the remaining by Birla TMT holdings Private Ltd. both AV Birla family owned companies. Malaysia based Axiata bought a 19.96% stake in the company in 2009.

Merger with Vodafone IndiaEdit

On 20 March 2017, Idea and Vodafone India announced that their respective boards had approved a merger of the two companies. The merger will not include Vodafone's 42% stake in Indus Towers Ltd. The merger will create the largest telecom company in India by subscribers and by revenue. Under the terms of the deal, the Vodafone will hold a 45.1% stake in the combined entity, the Aditya Birla Group will hold 26% and the remaining shares will be held by the public. The merger is expected to be completed by March 2019, and the newly merged entity will be named at a later date.[5][6]

OperationsEdit

Idea competes with other major mobile operators including Airtel, Vodafone, BSNL, Reliance Communications, Aircel, Telenor and Tata DoCoMo. While Idea competed very closely with the then smaller operators like Reliance Communications, BSNL, Tata, Aircel in circa 2006-07, as of 31 Dec 2015, Idea has gone far ahead of the rest of these competitors clocking a Revenue Market Share of over 18.5% while the rest remain below 9%. Over the last 3 years, Idea has cornered an incremental Revenue Market Share of 33% giving tough competition to market leaders Airtel and Vodafone by earning 1/3rd of the incremental market - way above its fair share of the market.

On 19 May 2010, in the 3G spectrum auction Idea paid 57.68 billion (US$900 million) for spectrum in 11 circles.[7] Idea launched its first 3G services in 2011. As of 31 Mar 2016, Idea Cellular offers 3G services on its own spectrum in 13 telecom service areas—the latest being Delhi (NCR) and Kolkata. Idea has now launched its own 4G LTE services in over 350 towns across 10 telecom service areas including its leadership service areas like Maharashtra, Kerala, MP&CG, AP&T, Punjab and Haryana. It now provides 4G services in the service areas of Karnataka and Tamil Nadu covering large metros and mini metros of Chennai and Bengaluru.

Idea strengthened its customer base after the launch of MNP in India. As per information available in the public domain, Idea leads the net port ins and is ahead of both Airtel and Vodafone in gaining from Mobile Number Portability.[citation needed]

ReferencesEdit

  1. ^ "Idea Cellular – Cell Phone Services". Retrieved 28 June 2012. 
  2. ^ "Consolidated Result". Retrieved 28 June 2012. 
  3. ^ "Telecom Subscription data, June 2015" (PDF). TRAI. Retrieved 28 November 2015. 
  4. ^ "Cingular Allows Agreement to Sell Stake in Indian Wireless Service Provider to Expire". U.S. Securities and Exchange Commission. Retrieved 2015-06-07. 
  5. ^ "Idea approves merger with Vodafone India, to create India's largest telco". The Economic Times. Retrieved 20 March 2017. 
  6. ^ Kurup, Rajesh (20 March 2017). "Idea Cellular board approves merger with Vodafone India; shares tank 9%". The Hindu Business Line. Retrieved 20 March 2017. 
  7. ^ Pahwa, Nikhil (19 May 2010). "India’s 3G Auction Ends; Operator And Circle-Wise Results". MediaNama. 

External linksEdit