On Idea Cellular’s earnings conference call for the quarter ended June 30th 2011, Idea MD Himanshu Kapania said that the spectrum was completely stretched and the company is looking forward to a spectrum trading policy, transfer policy, merger and acquisition policy, coming into effect with the New Telecom Policy 2011. He also discussed some other issues, including the need for tariffs to go up citing high interest costs and the market getting matured. Notes from the conference call: Hinting at a tariff hike: For the six major circles of Kerala, Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh and UP West, Idea has closed or modified the promotional offer of 1 paisa per second and now the new subscribers in these circles can sign on for a six-month or a one-year special tariff promotion of 1.2 paisa per second, for calls to other Idea subscribers or any other mobile subscribers, local and STD. The company will monitor the effect on minutes of usage and elasticity of demand from existing customers before considering other service areas for revision in the promotional offer. Responding to an investor's question on tariff hike, Kapania said that the company was currently testing the water in circles where it has a good marketshare, and it's too premature to comment. Although, he added that interest costs on 3G and BWA spectrum fee and the rising inflation have increased costs for telcos. " For sustaining of our operations it is inevitable that we need to be able to increase price. We are also reaching a stage…
