Videocon enters GSM mobile market

Consumer electronics major Videocon today rolled out its GSM mobile network in Chennai and said it plans to invest Rs 14,000 crore over next three years to become a top pan-India operator.

The Venugopal Dhoot company, which has presence in sectors from oil and gas to DTH services, will roll out services in 100 cities in as many days and the tariff rates are likely to be below one paise.

The rapid expansion could well increase the competition in the telecom industry, which is already crowded with 12 players in many circles.

"We want to be the top 3 service provider in the country over the next three years and to fulfill this, our plan is to invest Rs 14,000 crore in this business over the next three years," Group Chairman Venugopal Dhoot told reporters after unveiling the service.

The Group, which has licences for all the 23 circles, would be pan-India operator by September end, and the company is in the process of setting up 70,000 base stations in the country, of which 3,000 are already operational in Tamil Nadu, he said.

On revenues from mobile services, Dhoot said the company expects to raise $3.8-4 billion by 2013.