Videocon Telecom to invest Rs 400 cr in Gujarat by fiscal end

Thanks to its growing popularity among subscribers in Gujarat and high traction in the mobile number portability (MNP), Videocon Telecom is set to invest around Rs 400 crore by March 2014 in a bid to add another 800,000 subscribers to its kitty.

"We had a budget of Rs 1200 crore for Gujarat of which we have already invested Rs 800 crore in installing cell sites and strengthening our distribution network in the state. We will invest the rest by March 2014. Apart from investing further in cell sites, we will increase our visibility in Gujarat. Through our Videocon Connect stores, we have adopted the pattern of small shops that will cater to our subscribers needs for GPRS, SIM cards, mobile handsets and D2H services," said Arvind Bali, CEO and Director of Videocon Telecom.

From the current subscriber base of 1.2 million in Gujarat, the company plans to add another 800,000 to take the number to 2 million by March 2014. "In next two years, we are aiming at a fair market share on customer market share (CMS) of 10 per cent in Gujarat. Currently, the share is almost negligible. We are also going to launch post-paid services from December to enhance our subscriber base," Bali added. Videocon Telecom has been one of the fastest growing brands in Gujarat, with the operator registering growth in subscriber base at a CAGR of 123 per cent and revenue growth at CAGR of 155 per cent between Jan 13 t o Oct 13 in its Gujarat telecom circle. What's more, around 7-8 per cent of the net additions have come through MNP traction for Videocon Telecom.

"By March 2014, our net additions through MNP will go upto 15-18 per cent in Gujarat," Bali added. After Vodafone and Idea, Videocon Telecom is the third highest gainer in terms of net MNP additions across all its operational circles.

Videocon Telecom's average revenue per user (ARPU) in pre-paid segment in Gujarat circle has been around Rs 120-150 per month. Talking about the 4G launch in Gujarat circle, Bali said that the move will still take another 7-8 months due to technological challenges.

Meanwhile, in terms of Videocon Connect stores, the company plans to open 500 stores in all its circles put together including 180 stores in Gujarat by March 2014.