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Videocon Telecom to rollout 4G services in UPE, UPW & Bihar Telecom circles
Only a few metropolitan cities in India are being provided the 4G services. Just like at the time when 3G services began reaching out to various cities, the 4G services are quite expensive and not every telecom company is providing it. Only a few select big cities are being provided with 4G services because of its high costs. While most of the leading telecom companies in India are busy satisfying their customers in big cities Videocon Telecom has decided to rollout 4G services in UPE, UPW and Bihar Telecom circles.
Videocon Telecom plans to rollout 4G services in UPE, UPW and Bihar Telecom Circles
Videocon Telecom, the next-generation GSM mobile service network, was launched by Rs. 25,000 crore Videocon Group. It is a versatile, friendly and dynamic telecom brand and holds 5 MHz liberalized spectrum in the 1800 MHz band in UPE, UPW and Bihar Telecom circles. It is planning to utilize the entire spectrum for rollout of 4G LTE services in 29 key cities and offer voice on overlay network in these select cities. In remaining coverage area, the company shall offer 2G voice on own network.
Videocon Telecom has adopted a new strategy which is to play low in the cluttered and hyper competitive Voice market and straightway debut in the high potential data market taking the first mover advantage. As per the telco, 4G LTE FDD technology is very efficient on 1800 MHz and allows greater speeds & accommodates higher subscriber base to provide an unmatched customer experience. This will also give telco the distinction of being the first telco to offer 4G LTT FDD services on 1800 MHz in the country with digital voice. Videocon Telecom will be making an investment of over Rs 1200 Cr in next 3 years for 4G rollout in 29 cities across these 3 circles. The plan is to roll out 6 cities in phase 1, 12 cities in phase 2 and another 11 cities on phase 3 covering the key potential cities across these circles. The telco is working closely with Deloitte as their consulting partner and Huawei & NSN as their technology partner, who are also telco’s partners in their existing operations.
Videocon Telecom was launched by Rs. 25,000 crore Videocon Group.
Speaking about the announcement, Arvind Bali, Director and CEO, Videocon Telecom said that mobile telephony is now over 20 years old now in the country, with still predominantly Voice play. Having lost the momentum that they built in 2010, they re-entered the industry just 2 years back. The voice market is already skimmed, with the incumbents in a dominating position having acquired a sizeable base of stable, loyal and high usage subscribers. Given the market dynamics, it doesn’t make sense for a new Telco to compete in the voice domain with ever shrinking margins & high cost. He further said that 5 MHz spectrum is not enough to accommodate both Voice and Data. Looking at all the possibilities, they have strategized to look at the opportunity differently & utilize the entire 5 MHz liberalized spectrum for rollout of 4G data services in select key cities and offer voice on overlay network in these cities. In other cities/towns, they will be offering voice on their Network.
Videocon Telecom’s strategy now is to take the first mover advantage on data. This will also give it the distinction of being the first telco to offer 4G LTT FDD services on 1800 MHz in the country. Videocon Telecom plans to invest over Rs 1200 Cr in the next 3 years for rollout of 4G services in these 3 circles, and with this, it also plans to prioritize its ISP rollout in these circles to compliment 4G. It will be offering bundled 4G devices including Myfi dongles.
Videocon Telecom is also planning to offer 4G data at 2G/3G rates to encourage early adoption, and will be offering bundled devices as well. It is also foreseeing to partner up with other telecos for 4G data which could come as an added business line for them.
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