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Idea Cellular '03/04 sales to grow 50%

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CIOL Bureau
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NEW DELHI: Idea Cellular Ltd expects its year to March 2004 revenue to surge 50 percent on the back of a jump in customer base and increased usage.

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"Our revenue for 2002/03 was 8.0 billion rupees," Sukanta Dey, chief marketing and commercial officer, told reporters on the sidelines of a product launch.

"We are expecting growth of at least 50 percent as the number of our subscribers will go up and their usage patterns will go up because incoming calls are now free."

Dey gave no estimates for Idea's expected profit but said the firm was "near about cash break-even".

Pune-based Idea Cellular, equally owned by the powerful Tata and Birla groups and AT&T Wireless Inc, provides cellular services in five out of the country's 22 telecom zones. It has more than 1.56 million users.

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"Our user base will grow more than 50 percent by March 2004," Dey told Reuters.He said the company would spend between 5.0-6.0 billion rupees this year to further strengthen its telecoms infrastructure in the five circles.

India's booming nine-year-old cellular industry has more than 15 million users, and the number is expected to grow to at least 100 million by 2008 as the world's cheapest call rates and reducing entry barriers draw new customers.

© Reuters

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