The Supreme Court created history by delivering its judgement in the 2G scam case, where it cancelled 122 licenses given by the Telecom Minister A Raja in 2008.
Rajat Mukherjee, chief corporate officer - Idea Cellular, says that they were not part of the group of companies which started out in 2008. In fact, they had applied for licneses three years earlier. "It is unfortunate that we were clubbed with the others."
In an exclusive interview with A Ganesh Nadar, Mukherjee talks about the company's future plans and the scam. He is the first officer to speak on the scam from Idea Cellular, a company that is part of the Aditya Birla group.
What is your take on the 2G scam?
The order of the Supreme Court is fairly judgmental. Overall the judgement to cancel all the licenses granted in 2008 seems fair. We cannot question the judgement, but we feel that some parts need to be reviewed.
Were you shocked by the license cancellation verdict?
Yes! It was a shock. Even our chairman Kumaramangalam Birla feels the same. Idea Cellular has been in operations since 1995. And, we applied for expansion of our services in 2006. Our application was kept pending for 19 months. We were never a part of the new operators. But, we were granted licenses along with them. We expected the Supreme Court to observe this.
What is your company's loss? How has it affected your expansion plans?
The impact is quite small. We have 110 million subscribers and only 6 million members
are affected. The revenue loss is only 5 per cent. The markets, too, have realised that and the overall share value has not been affected.
Will a fresh auction help your company?
Yes! We are a serious player. We will participate in the auction.
What is your take on the political-business nexus when it comes to awarding big contracts?
(Smiles) I don't think I want to answer this question.
How many circles are you planning to expand?
The seven circles where we have a presence, we will apply for that.
How can the government make the auction process transparent?
Consultations are going on between the mobile operators and TRAI to help us understand the procedure.
Are you hopeful of a positive outcome?
I believe that the industry has faced many upheavals in the past. We have succeeded nevertheless. The scope of the telecom industry will be more in the future. The government should look at the industry as a whole, as it is not doing so well at the moment.
How do you see the telecom market growing in India?
Very positive! We have 900 million subscribers. Also with the presence of two SIM phones and dual applications, we hope to grow at a fast pace. Further, as the number of devices grows, much more connections will be required.
Will the mobile tariffs fall further in India?
I don't think that will happen but we will have to wait and watch.
How do you see Idea's growth in the coming years?
Our last quarter was very positive. Our balance sheet is well. We will grow ahead.
Image: Rajat Mukherjee