Hit by spectrum auction, Idea to sell its towers Multinationals show interest in the deal

idea-logoIdea Cellular, one among the debt-laden companies after expensive spectrum auction as part of fresh capital-raising plans is planning to sell its to sell its independent towers. The Aditya Birla Group subsidiary is looking for a Rs 7,580-crore ($1.2 billion) revenue from the deal. Sources reveal Economic Times that Malaysia’s Axiata, Bharti Infratel and American Tower Corporation (ATC) have expressed their interest in the deal. Idea Cellular is India’s third largest mobile service provider which owns and operates about 11,000 towers in the country.

A recent securities report said that Idea’s net debt to gross operating profit is expected to touch 2.9 in the current fiscal, up from 1.3 in the previous year. Debt worries are affecting the telecom stock despite good business performance. Idea carries a consolidated debt of Rs 14,000 crore in FY15. The country’s largest wireless service provider Bharti Airtel are also in a fix as it forced to give up its African towers assets as an attempt to decrease its financial leverage.

Malaysian giant Axiata had earlier approached Idea for acquiring its tower assets as the company is looking to grow in the India. ATC is also in talks with other companies for acquiring the towers.

Experts are at the opinion that the telecom infrastructure providers are bouncing back as service providers need more and better towers on the back of surging data consumption and rising 4G penetration.

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6 Comments on "Hit by spectrum auction, Idea to sell its towers Multinationals show interest in the deal"

 

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Ar Jyoti
May 23, 2015 6:27 am 6:27 AM

Idea cellular is much better then others.

sanjit roy
May 23, 2015 1:20 am 1:20 AM

Idea cellular is still far better positioned compare to other operators in terms of debt levels, just look at the debt levels of rcom, aircel, Tata docomo and Bharti airtel. Also idea cellular’s revenues net profits and customer base is rising day by day at good numbers. I must tell very soon idea cellular to surpass Vodafone in customer base figure.

sachin
May 23, 2015 12:28 am 12:28 AM

Look at those stupid adds idea spends crores of money on…..IIM institute …..don’t they add debt?

ankush
May 23, 2015 2:51 am 2:51 AM

Well said bro
Aditya Birla is from iin I guess.spending crores on stupid advts
advts.

Sudhakar
May 23, 2015 11:52 am 11:52 AM

He is no more
Respect him bro
Due to him international trading has increased during late 90s from 20% to 70%
And in any company there is a budget for advertising and that money cant be used anywhere except marketting
So this way that company spends money on IIN ads and dont you think they are good dose of entertainment & inspiration for old people to opt for internet
So please do research abt the person and then speak bdw he is from Massachussets worlds best university so dont dare to speak abt him

nizamala
May 23, 2015 8:16 pm 8:16 PM

U r right bro.
This person have trimendus past,present&future.he is one of the best person who led the group of 2 billion to 42 billion in 20 years.
No one could do this type of improvement & growth. Because he taken over the group in the age of 28. Any one remember this kind of person to take the leadership in 28 years of age & that time when his father’s ultimate death. Think that what kind of situation of him when taken the group leadership.

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