Aircel looks to double 3G user base

Chennai-based telecom service provider Aircel is betting highly on third-generation (3G) mobile services for the next level of growth as it expects to double its 3G user base in the next one year. It has also geared up for the launch of 4G services.

"The volume of data on our networks is doubling every year. It is like an exponential curve. In the past months, we have added 7,000 sites and will add 7,500 more 3G sites in the next six months," Anupam Vasudev, chief marketing officer, told Business Standard. Currently, seven to eight per cent of its users are on 3G. The firm expects the number to double in the next one year. "Interestingly, this seven to eight per cent of users contribute 40 per cent to our data revenue, which will also go up to 50 per cent soon," he said.

With device ecosystem in place, the growth phase has started, Vasudev said. The company has already started offering 4G services to enterprise users and the pilot projects have been started for retail customers. "We will gradually increase the 4G network, first the focus is on 3G," he said.

Aircel had won BWA (broadband wireless access) or 4G licences in Andhra Pradesh, Tamil Nadu, West Bengal, Bihar, Odisha, Assam, northeastern states and Jammu and Kashmir in the 2010 spectrum auction, while it has 3G in 13 circles out of 22. When asked if the company had started discussions with other operators on spectrum sharing and trading, Vasudev said such discussions were on and they were exploring all permutations. He declined to share details. Aircel has started to offer basic free internet at 64 kpbs in Tamil Nadu and plans to expand it to all 13 circles.

"For new customers, the basic internet is free for three months. And if they continue to be active after three months, by recharging with amount of at least Rs 150 a month, the free services will continue," vice-president (data, devices and online) Sunil Kuttam said.

Aircel has partnered with Microsoft, Samsung, Gionee, Micromax, Lava, Karbonn and Intex to offer their devices at discounted price with some amount of free data.

"We are also partnering Snapdeal, Amazon and Flipkart to sell paper recharge. These recharges are sold under cash on delivery model for those customers who are skeptical of sharing their debit or credit card details online," Kuttam said.

The company on Sunday announced sale of two recharge vouchers in denomination of Rs 402 and Rs 602 through Snapdeal, which will offer 3G and 2G mobile internet service at discounted price compared with options available through retail channels.

It has also partnered Ingram, a mobile insurance provider, for Aircel Cover Plus. Any customer who buys a new smartphone through Aircel will be able to choose from two variants of this product within seven days of the purchase for getting coverage limited to Accidental and Liquid Damage only.