The Idea management is taking a hardline on the TRAI's recomendations. Himanshu Kapania, managing director, Idea Cellular says that the recommendations are inconsistent and regressive. Kapania says that Idea will continue to agitate against the cancellation of its licence by the Supreme Court, reports CNBC-TV18’s Kritika Saxena.
“Currently, only 50% of the country population uses mobile services. Why should we divert our investments away from voice segment and rural areas where 300-400 million subscribers are yet to be tapped to unprepared wireless broadband services,” said Kapania.
The question that needs to be asked, why should India vacate voice market? When none of the countries like the United States, China, Europe and South East Asia have vacated voice market in the 900MHz.
Two days back in the clarificatory application, the Supreme Court has extended the completion of auction for the Government of India till August 31.
It is also clarified that all operative licences should continue to offer services to the customers till September 7. Seven days after the auction process is complete and the spectrum is reallocated.
Kapania said, currently, we reject the proposals of TRAI and hope that the Government of India will also reject the proposal and continue to focus on the directions of Supreme Court and help growth of voice business in the country. We wait for the final directions from the Government of India to take the next course of action.
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Idea Cellular stock price
On November 26, 2015, Idea Cellular closed at Rs 147.05, up Rs 7.20, or 5.15 percent. The 52-week high of the share was Rs 203.90 and the 52-week low was Rs 127.00.
The company's trailing 12-month (TTM) EPS was at Rs 8.39 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 17.53. The latest book value of the company is Rs 60.82 per share. At current value, the price-to-book value of the company is 2.42.
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