The Hindu : Idea Cellular, new name for Birla-Tata-AT&T

Online edition of India's National Newspaper
Wednesday, May 01, 2002

Business

Business

Idea Cellular, new name for Birla-Tata-AT&T

By Our Staff Correspondent

MUMBAI APRIL 30. Birla-Tata-AT&T, the cellular services giant, has been christened Idea Cellular Ltd.

The new name of the company was announced here today by Ratan Tata, chairman, Tata Group.

The new brand `Idea', will replace existing brands of AT&T in Maharashtra, Goa and Gujarat, of Tata Cellular in Andhra Pradesh and of RPG Cellular in Madhya Pradesh and Chhatisgarh.

The company will soon launch its service in Delhi and its new pre-paid service is to be called `Idea Chit Chat'.

Idea Cellular is an equal three-way joint venture between the Tata group, the AV Birla group and AT &T, formed by the merger of Tata Cellular with Birla AT&T. Sanjeev Aga, President and CEO, Idea Cellular, said the company would assume its new name once formal permission was obtained from the Registrar of Companies.

The company has introduced its common pan-India brand when, in fact, it is also in talks with BPL Communications for a merger of cellular operations. Idea Cellular has direct equity of Rs. 2240 crores invested in the last five years.

Although the original parties to the joint venture had achieved individual financial closure, the company was having its second financial closure for the merged entity, he said.

The nearly 100 per cent sponsored equity and clean capital structure allows huge leveraging potential, providing the business with multiple leveraging options to growth organically and inorganically. While equity amounts to Rs. 2,240 crores, debt, both rupee and forex, would have about the same figure, and thus the debt and equity would together total Rs. 4500 crores.

Over the next ten days the company's mass media campaign for the new brand will be rolled out across the country. The company is a few months away from launching in Delhi. Idea Cellular has a subscriber base of 8.5 lakhs and has registered a growth of 135 per cent over last year, outpacing the industry average of 80 per cent.

Send this article to Friends by E-Mail

Business