Idea Cellular, an Aditya Birla group telecom company, is looking to capitalise on the customer churn rate in the telecom industry to tap the crowded and highly-competitive Mumbai market.
MUMBAI: Idea Cellular, an Aditya Birla group telecom company, is looking to capitalise on the customer churn rate in the telecom industry to tap the crowded and highly-competitive Mumbai market. The company is now busy setting up 200 Idea Cellular showrooms ahead of the launch.
Pradeep Srivastava, chief marketing officer, Idea Cellular Ltd, told DNA Money, “We are waiting for the monsoon to retreat. Our Mumbai services will be launched by the end of September.”
The company has tie-ups with 15,000-20,000 outlets across India for retailing its telecom products.
Analysts feel that Idea’s fight for a share in the Mumbai market is likely to be a tough one, as most telecom companies already have a large presence here.
But Idea Cellular is banking on customer dissatisfaction with call drop (the disruption in network) and higher SMS rates to lure customers away from their existing service providers, said India Infoline analyst GV Giri.
Industry estimates peg the annual churn rate at 10%. Idea’s Srivastava said the company is facing a churn rate of 8%, which it hopes to lower to 4% within a year through some ‘unique offerings’.
He, however, did not elaborate on these offerings. He said, “We will target immigrants and first-time users from among college-goers, housewives and others. We will give them better network.”
Idea Cellular has licences for operation in 13 circles. Through the acquisition of Spice, it obtained the licences for Punjab and Haryana circles too. The company has set aside Rs 10,000 crore as capital expenditure for its various operational plans this year.
t_amit@dnaindia.net
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