Idea thinks long-distance

The day after government eased entry restrictions to the National Long Distance NLD segment, Idea Cellular said it is considering to apply...

The day after government eased entry restrictions to the National Long Distance NLD segment, Idea Cellular said it is considering to apply for a NLD permit. The company has also decided to pass on benefit from cuts in licence fees to subscribers.

8216;8216;We are looking at the option of applying for a NLD licence, we have not looked at the fine print yet, but if it makes business sense we can do it,8217;8217; Idea CEO Vikram Mehmi said on Friday.

Severe cuts in the licence fee to enter the long distance segment are expected to encourage many operators who do not already have national presence to apply for NLD permits. 8216;8216;Ninety or 99 per cent of the cut would be passed on to our subscribers,8217;8217; Mehmi assured.

Idea, which is 51 per cent owned by the Birla Group and 49 per cent by the Tatas, is also expanding to UP East, Rajasthan and Himachal Pradesh by the first quarter of next financial year. 8216;8216;We will invest Rs 300 crore in the three circles this fiscal and more in the next,8217;8217; Mehmi said.

Pre-paid phones get fresh idea

NEW DELHI: Pre-paid is the new battleground of mobile wars. Though pre-paid users make up 70 per cent of mobile subscribers, its users often pay half or more their cash card amounts as processing or service fees, even before they use any talktime.

To change this, Idea Celluar has introduced a pay-as-you-go pre-paid service that does not pre-judge buyer8217;s talktime or tariff needs. With the same value-added services and tariff packages as today, Idea8217;s 8216;Superpower8217; launched on Friday doubles the validity period of most products. It also replaces processing fees with a daily charge of Rs 5, whose levy depends on the talktime consumed. Superpower will replace Idea8217;s existing pre-paid cards over 60-90 days at no cost. The daily deduction also reduces as usage climbs, and will be at Rs 4 daily for customers buying cash cards worth Rs 1,100 or more.

8216;8216;I believe Superpower will change the pre-paid segment, improve our acquisitions and expand our market. Its flexibility, simplicity and transparency are essential in a market crowded with at least 40 pre-paid offers today,8217;8217; said Vikram Mehmi, CEO, Idea Cellular.Idea, with some 7 million subscribers, will be in 11 circles by next year-end.