Idea Cellular currently covers 825 towns (up from 700 towns). 3G services are offered in 9 circles with 6,989 3G sites. Target for 3G coverage is 3,000 towns (end FY12).
The Management highlighted that 8% of their subs have 3G handsets but with $115-120 price levels for 3G handsets, takeup should improve. Idea stated that it has 2million 3G subscribers.
The Rise in Number of 3G Subscribers for Idea is a direct result of its Falling Tariffs. The following Table Clearly shows the Fall in 3G Tariff.
A Quick check on Bharti and Vodafone’s tariffs indicate that they have not reduced rates at this time. For example, Bharti continues to charge INR1/MB for the 100MB pack to INR0.38/MB for the 2GB pack while Vodafone’s rates on post-paid also remain unchanged. We expect other 3G telcos to also reduce their rates to remain competitive.
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