Idea Cellular to spend $250 mn on expansion

Reuters

Posted: Wednesday, Mar 05, 2008 at 1416 hrs IST
Updated: Wednesday, Mar 05, 2008 at 1436 hrs IST


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Vadodara, March 5: : Idea Cellular Ltd, India's sixth-largest wireless telecoms firm, will invest 10 billion rupees ($250 million) expanding its network in Gujarat, its chairman said on Wednesday.

"We are looking at the market very carefully and plan to invest in expanding our network in Gujarat," Kumar Mangalam Birla told reporters at the opening of a hypermarket.

Idea, part of conglomerate Aditya Birla Group, operates in 11 of India's 23 telecom zones. In January it formed an independent tower company with top mobile operator Bharti Airtel Ltd and Vodafone Plc to share 70,000 tower units.

Declining call rates, cheaper handsets and expansion of networks into smaller towns and rural areas have helped Indian operators add about 8 million new users every month.

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