Videocon Telecom Announced an Investment of INR1,200 crore for 4G Services
Published By : 20 Feb 2015 | Published By : QYRESEARCH
Videocon Telecom, valued at US$4 billion stated that it plans to make an investment worth INR1200 crore in the coming three years for rolling out 4G network. The company plans to sell its 4G in 29 cities in India across three circles, namely, East UP, West UP West, Bihar.
Arvind Bali, Director and CEO, Videocon Telecom stated that the company intends to take the first mover advantage and cash in on it. Videocon Telecom still repents not making the most of offering voice services. Also, with this move Videocon Telecom will be the first ever telecom service provider to offer the 4G LTE FDD services on 1800 Mhz in India.
In the first phase, Videocon will roll out services to 6 cities, followed by 12 in the second phase, and then 11 in the third phase. This will help the company to cover the key areas it plans to cover.
The telecom company has a 5Mhz liberalized spectrum in the 1800 MHz band for the circles. It intends to use the full spectrum to offer its 4G LTE services along with voice on overlay network in these cities. In the remainder coverage area, the company will offer a 2G voice on its own network.
Mr. Bali further explained that the there is tough competition in the voice market with key players holding dominating position. Over the years, they have acquired huge market shares that are stable with loyal customer base and great number of subscribers. Owing to these reasons it makes no sense of a new player to dive into this competition with head first. It would only lead to high costs and lower profit margins.