Net profit of one of the major cellular company of India, Idea Cellular was down by 31 per cent, said the company on Friday.

The reason for this fall is that it has been facing operational losses happening due to launch of new services and also because of the payments for buying spectrum.

Falling circle rates and rising competition not only on the large infrastructure front but also on the tariff side has also done its bit to increase the expenses.

In money terms, the profit was at Rs. 201.4 crore for the quarter ending June 30. The revenue was at Rs 3,654 crore, which is 23 per cent higher than the last year.

The good thing is that the financial are generally in line with the analyst expectations.

Indian telecom industry is facing intense completion which has risen after entry of new operators including Norway's Uninor. And to be able to stay on top of others, the service providers are giving low calling rates. More-so, the introduction of one-paise-per-second rate by Tata DoCoMo is also forcing the payers to reduce tariff.