A strong contender!

TModerate he country’s third-largest operator by subscribers has a history of survival and growth through resilience, and also has the third-largest number of existing 4G circles. It has already launched 4G in the eight circles of Karnataka, Andhra Pradesh, Kerala, Tamil Nadu & Chennai, Madhya Pradesh, Punjab, Haryana and Orissa, and says it is in the process of rolling out in two more circles of Maharashtra and North East by June.

Idea Cellular, however, received a setback when its talks with Videocon to buy out the latter’s 1800 MHz spectrum in the two circles of Gujarat and UP West couldn’t materialize. The deal would have enabled Idea to launch 4G in 12 circles instead of 10.

Nevertheless, Idea remains a strong contender in the 4G game, and would have the option to acquire the required spectrum through sharing deals or future auctions, though those could be fraught with potential uncertainties and hence risks. Also, considering that Idea is mostly standardized on FDD LTE for its 4G offerings, it is unlikely to deviate into TD LTE territories such as 2300 MHz.

Idea had earlier claimed it deployed as many as 14,000 4G sites in a matter of 100 days, to cover 575 towns across 10 circles. It also said its 4G service was the first in 250 of the towns.

Also, in expanding its 4G footprint, Idea continues with the strategy of further strengthening and consolidating its position in its leading revenue circles. Of the four circles where it leads in terms of revenue market share, it has launched 4G services (or is in the process of doing so). Another three 4G circles are drawn from a pack of five circles where it is second in terms of revenue market share. Two other 4G circles (Karnataka and Tamil Nadu) serve the purpose of complementing its other two 4G circles in south India (Andhra Pradesh and Kerala) and thus covering whole of south India.

Seen in the context of revenue market share, the failure of talks with Videocon may cost Idea strategically. A deal with Videocon could have earned Idea 4G presence for the circles of UP West and Gujarat, where Idea currently is No. 1 and No. 2, respectively, in terms of revenue market share. An absence of 4G could impact its leading positions in these circles.

Idea’s 4G spectrum assets