Idea Could Exit Tower Biz for Cash Com­fort

The Economic Times - - Finance & Commodities -

both cap­i­tal and op­er­at­ing ex­pen­di­ture.

Idea, as of now, has a re­cruit­ment freeze and will not hire un­less nec­es­sary. “Huge amount of ef­fort within the com­pany has been done across all cir­cles to bring down our op­er­at­ing costs,” added the MD.

Bro­ker­age Credit Suisse noted that the de­cline in Idea’s op­er­at­ing profit was sharper than Bharti Air­tel’s 16% on-quar­ter fall.

JM Fi­nan­cial said Idea’s op­er­at­ing profit will de­cline fur­ther in the cur­rent Jan­uary-March quar­ter due to Jio’s free ser­vices.

Ka­pa­nia said Idea has been op­er­at­ing at a capex of 1820% of rev­enue and would like to bring it down to the ear­lier level of 12-15% of rev­enue. He de­clined to com­ment on the on­go­ing merger talks with Voda­fone In­dia. He said the in­dus­try is in a con­sol­i­da­tion mode and only those that can give in­te­grated of­fers will sur­vive.

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