“We are modernising the network to be ready for high speed data. We will build capability and then ride on the platform. We are investing Rs 1240 crore for the next one year for upgrading the technology,” said Sharad Mehrotra, CEO, Telenor India.
The company is working with Huawei India to modernise its existing network and make it future ready across its six operational circles. As part of the deal, in the next two years, 24,000 sites in Telenor circles will be modernised with state-of-the-art equipment offering enhanced power and spectrum efficiencies for superior experience.
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Speaking about profitability and strategy of the company, Mehrotra said "We keep our operating cost low and pass on the savings to customers. Our costs are almost 30 per cent low as compared to other service providers. Also, we have outsourced few services which helps us to reduce the costs. Telenor India's Arpu (average revenue per user) is Rs 97 which is lowest in the country.”
He added that 23% of Telenor’s subscribers use data services and that he expects it to cross 50% by 2017.
The company in September announced a free life insurance scheme for its customers in partnership with Shriram Life Insurance and MicroEnsure. Telenor is also the only operator in the country today to voluntarily compensate for any call drop on its network.
Along with the network expansion and modernisation plan, Telenor is increasing its retail footprint. By this year-end, the company plans to add at least 14,250 new sales outlets, which will take its retail base to over 80,000,
Telenor offers mobile services in six circles of UP (West), UP (East), Bihar (including Jharkhand), Andhra Pradesh, Maharashtra and Gujarat. It will soon start commercial operations in Assam.
As of September 2015, Telenor had 7.70 million subscribers in Maharashtra and 48 million customers across India.