New Delhi, Feb. 10: Idea Cellular, the mobile operator promoted by the Tata-Birla combine and AT&T, today announced its intention to acquire a regional mobile operator.

If it does come through, it will be its second acquisition this year after the Rs 1,150-crore buyout of Escotel. A senior Idea Cellular executive indicated that the acquisition could be completed in this calendar year.

Vikram Mehmi, CEO of Idea Cellular, said that as part of the company’s strategy to become a leading cellular operator, it would aggressively plan its acquisition strategy and expand its footprint.

He said the company was getting feelers from operators in Maharashtra, Rajasthan and a few other places in the country.

“We are in discussions with many regional cellular operators, especially first and the second licensees. In a few cases, we are in advanced stages of negotiations and a clear picture will emerge soon,” Mehmi said after the launch of EDGE technology services as a pilot project in Delhi. The company today showcased the Enhanced Data Rate for Global Evolution (EDGE) trials, using Nokia’s solution for EDGE technology.

Mehmi said the company would decide within the next two weeks whether or not to come out with a public issue. “If we decide to go for an IPO, the proceeds would go towards acquisitions and other market expansion activities,” he said.

“The bankers or lead managers have not yet been appointed for the purpose and the work is being done internally,” said Mehmi.

The company offers cellular services in 11 circles and has an overall subscriber base of three million.

While refusing to comment on a possible equity takeover of its foreign partner AT&T by either Tata or Birla, Mehmi said, “None of the three owners have expressed a desire to exit the venture at this point. The owners of this company have invested more than Rs 900 crore in the venture and they are committed to its growth.”

Idea has proposed a capital expenditure of about Rs 1,700 crore over the next three years which, Mehmi said, would be financed through debt and internal resources.