Videocon to offer 4G services at 2G rates

Co plans to roll out new tariff for next generation technology from Gujarat

In what could launch out a price war in the yet to be launched 4G services, Videocon Telecom is planning to offer the next generation mobile telephony and data services at rates similar to 2G service tariff in Gujarat.  The company is planning to launch trials of the 4G LTE FDD on 1800 mhz in Gujarat around the festive season of Diwali before deciding on a formal launch.

“Gujarat will be the first circle where we will be rolling our 4G LTE FDD services. We will sell high price at lower price. In Gujarat, 4G services will be available at the rate of 2G. Before the launch of 4G services, we are planning to conduct trials around Diwali in Gujarat to gauge the market,” said Arvind Bali, director and chief executive officer of Videocon Telecom.

Bali said that though several telecom operators have bagged spectrum for 4G services, the handset market and other telecom ecosystem in India is still not ready for the new technology.

However, in a bid to prepare for the 4G launch in Gujarat, Videocon Telecom is planning to invest around Rs  400 crore primarily on Network, IT and 4G LTE FDD roll out.

Apart from 4G roll out, the investment will see the company adding 730 more cell towers to the current number of 4103 towers in the state of Gujarat.

Also, with the investment, as against a current population coverage of 51 per cent in Gujarat, Videocon Telecom will expand the coverage to 65 per cent in the state post deployment of additional 730 towers.

“By end of March 2014, we will have around 2 million subscribers in Gujarat which we hope to take up to 4 million by next year. Also, from a current revenue of Rs  150 crore in Gujarat for 2013-14, we are targeting a revenue of Rs  350 crore in 2014-15,” Bali added.

Videocon Telecom has been one of the highest gainers under the mobile number portability (MNP) in Gujarat.  “With one of the highest net subscriber additions in the state, we have got a good traction from MNP Customers. We have grown our subscriber base and Revenue at a CAGR of 205 per cent in the current FY,” said Bali, adding that though data usage forms 16-18 per cent of Videocon’s business, the company will be focusing on strengthening its data services in near future.

Meanwhile, Videocon Telecom inaugurated its 500th exclusive store ‘Videocon Connect’ among its five circles at Ahmedabad.

“Videocon Connect is a first of its kind integrated and exclusive branded retail format store which is aimed to address the Information, Communication and Entertainment (ICE) needs of consumers. This will be a one stop shop to showcase, sale and service Videocon’s range of products including Videocon Telecom products, Videocon D2H & Videocon handsets. From current 173 stores in Gujarat, we will be taking the total number of stores to 400-450 by next year,” Bali added.