Idea Cellular, the country's third largest telecom operator, reported 4.5 percent growth in net profit and 4.6 percent in revenues on sequential basis, missing analysts' expectations
In a bid to entice telecom companies for the upcoming 2G auctions, the empowered group of ministers (EGoM) has lowered SUC to a maximum of 5% of average revenues.
Himanshu Kapania of Idea Cellular is hopeful that the government policies would help the overall growth for the sector.
Idea Cellular's strategy of focusing on rural markets will pay off in the long term.
Speaking to CNBC-TV18, Jaideep Ghosh, telecom partner, KPMG says that the apex court‘s decision will definitely impact the revenues of Bharti Airtel, Vodafone and Idea Cellular. "But," he adds, "the low penetration levels offer immense opportunity and regulatory clarity could go a long way towards a sustained exploitation of this opportunity."
The government's 2G auction plans get a blow. There are no takers for the 900 megahertz GSM spectrum in the upcoming auctions in March as Vodafone, Bharti Airtel and Idea have decided not to participate.
Rohit Chordia, Kotak Institutional Equities, says that given the data off take we have seen in the last two or three years, since 3G networks was rolled out, and the limited success that Bharti has seen with its 4G rollouts in a few cities, he feels it will be logical to assume that RIL will enter the voice market.
On the sidelines of the HSBC India Investor Conference, Himanshu Kapania, MD of Idea Cellular told CNBC-TV18, India continues to be a strong voice market. He further added it would be speculative right now to comment on revision of headline tariff.
Himanshu Kapania, MD, Idea Cellular, says that the number of operators in the market is declining and we expect the overall industry average price realization to go up, then only Idea price realization would go up.
Sanjeev Aga, former CEO of Idea Cellular said, it is wrong to look at the impact of 2G auction on fiscal deficit. He also believes that the way the auction has panned out is not very desirable.
Ankur Rudra of Ambit Capital explains to CNBC-TV18 that the Cabinet approval of the one-time fee is an indicator that the government has realised that auction of spectrum is not a very viable route to raise revenue.
The Union Cabinet headed by Prime Minister Manmohan Singh today has approved a one-time spectrum charge on all existing telecom operators. GV Giri of IIFL does not see any material impact on stocks
Chandrashekhar further added that the reserve price for 900 MHz to be fixed by the EGoM and the auction will be first focusing on 1,800MHz. The 900 MHz auction is to held between November 2012 and May 2013, he informed.
Telecom operators like Bharti Airtel, Vodafone, Idea, Tata Teleservices and Telenor today submitted application for participating in the 2G spectrum auction. Gopal Jain, Senior Advocate feels the companies who have applied for auction are along predictable lines. He feels the 2G auction is unlikely to move up to the benchmark of 3G auction.
Himanshu Kapania, managing director of Idea Cellular says, for the last two quarters, there has been a decline in the revenue per minute. According to him, going forward, there would be improvement in the rate realisation.
Himanshu Kapania, managing director, Idea Cellular believes that the current recommendations are aggressive and retrograde. They will push the growth of telecom sector far behind.
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.
Telecom Secretary R Chandrasekhar tells CNBC-TV18 that they will wait for Supreme Court’s ruling on their review petition before proceeding with the 2G auction process.
The Department of Telecom indicated that it could be accepting TRAI’s recommendation of a one-time payment for excess spectrum. GV Giri, telecom analyst at IIFL spoke to CNBC-TV18 about the prospects for the sector going ahead.
According to Himanshu Kapania, managing director of Idea Cellular, the rate hike in the telecom sector will impact customers over a one year period, not immediately.
In an interview with CNBC-TV18, Himanshu Kapania, managing director of Idea Cellular said that it's too premature to believe that pricing power is being given back to telecom operators.
In a CNBC-TV18 exclusive, the chairman of the Aditya Birla Group, Kumar Mangalam Birla reiterated the group’s commitment to telecom. He said its retail strategy was being reworked and that it was looking forward to a foray into the banking space.