We have to find ways to increase our revenue source or have to raise rates: Idea

NEW DELHI: The country’s third largest telecom operator, Idea Cellular, has said that it would be resorting to different ways to increase its revenue source with larger scale of business or will be raising the rates of its services.

“We are always looking at incremental sources of revenues...So, we will have to find the solutions to be able to increase our revenue source either by increasing our revenue source with larger scale of business or been able to raise rates,” Himanshu Kapania , Chief Executive, Idea Cellular, said on the sidelines of the Telecom Leadership Forum here.

The company, which would be paying Rs 30,360 crore to the government for acquiring spectrum, said that it has expanded 3G services to 13 key areas which is about 80% of its gross revenue and 10 services areas for 4G services, which cover 61 percent of gross revenue.

“The dynamics of doing the business is undergone a change. There was an era when spectrum, the key raw material in the country, was available almost free of charge it is now changing to almost most of the telecom operators having 52 paid licenses,” Kapania said.

“As far as Idea is concerned, out of the 22 circles we currently operate in 16 circles constituting about 85 percent of our spectrum, now we have extended life of our spectrum for the next 20 years,” he added.

The spectrum is the key raw material for us to run our services and now it has become extremely expensive this is what happening to coal as well. The government has to see what objectives they have set for themselves whether spectrum is a driver for growth or a facilitator for the growth or a bridge for fiscal deficit, he said.