Since entering the high teledensity circle of Mumbai in August 2008, Idea Cellular has launched its GSM services in Bihar and Jharkhand –­ states characterised by low teledensity figures. The launch makes Idea the fifth operator to offer services in the region, following operators Bharti Airtel, Aircel, Bharat Sanchar Nigam Limited and Reliance Communications (RCOM).

By entering the two states, Idea had marked its presence in 15 of the country's 22 telecom circles, which is almost 80 per cent of the national mobile telephony market in terms of reach.

"We are making a very serious attempt to broaden our customer base through wide and rapid expansion of our network in both states," says a senior Idea official. In the first phase of the network launch, Idea plans to cover 150,000 people in 2,500 towns and villages in Jharkhand and Bihar. This will be achieved through 880 towers and its tieup with 18,000 retail partners in these states. Idea also plans to set up a network of customer touch-points, besides customer care units in both the states. The company aims to gradually expand its reach to 16,500 towns and villages, taking its tower count in these states to 3,000 by the end of 2008-09.

The company recently secured a $100 million loan from the International Finance Corporation (IFC) in order to launch cellular services in Bihar and strengthen its national long distance telephony network. Moreover, IFC and Idea Cellular are developing a project under which they will jointly establish pocket public calling offices to deliver mobile phone-based communications and other value-added services to underserved rural communities and the urban unconnected poor in India.

Idea Cellular, which received start-up spectrum for the Tamil Nadu circle in 2008, is expected to launch services in the circle later in the year, followed by the Orissa circle in the beginning of 2009.