Idea has demonstrated its ability in the past to rapidly roll out operations in new circles and gain market share.

With the speed-up in spectrum allocation, we see Idea cellular to emerge as a pan-India operator by FY10, from the current limited presence of 11 circles. Despite its regional presence and a total market share of 9.7%, it continues to impress in its established circles with a market share of 19.5%. Idea has demonstrated its ability in the past to rapidly roll-out operations in new circles and gain market share. For instance -Delhi, where it enjoys a market share of 12% and three new circles, namely Rajasthan, UP (East) and Himachal Pradesh where it enjoys a 4-7% market share. Acquisition of Spice shall give it a kickstart in the lucrative circles of Punjab and Karnataka. New launches include its Mumbai operations which commenced in August 2008 and Bihar which is expected by October 2008. Operations on pan-India basis have advantages in terms of flexibility in offering multiple tariff plans, better usage of national advertising campaigns and higher traffic flow on one's own network, resulting in reduced network operation costs. We are upbeat that Idea shall be able to gain subscriber market share post its expansion in newer geographies.

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