Videocon Telecom CEO Arvind Bali drafts VNO strategy

Videocon Telecom, which has tied-up with Airtel for 4G spectrum sharing, will be re-entering the Indian telecom market by becoming a Virtual network operator (VNO).

Videocon Telecom has presence in the Punjab circle. Videocon Telecom has already initiated talks with top telecom operators to become a VNO to sell both voice and data services including 3G and 4G across the country.

Videocon Telecom is trying to rely on three areas to re-enter the Indian mobile service provider market which is dominated by Bharti Airtel.

Arvind Bali, CEO of Videocon Telecom, believes that the company has a good brand recall in the telecom space.

Second, one of the key strengths of the Videocon brand is its sales and distribution network in India. Third, the group has presence in telecom related businesses including its smartphone brand.

Videocon Telecom will launch 4G handset bundle offers to compete in the market. The telecom network operator has presence in other telecom businesses including NLD and ILD wholesale business and enjoys 10 percent market share.

The company can also retain its employees if it continue to operator as a VNO.

VNO model will be suitable for Videocon because there’s no need for the group to make huge investment in telecom networks and spectrum.

The VNO business model allows the MVNO player to offer the latest technologies including 3G / 4G and 5G later.

VNOs will need to focus on its sales and distribution, marketing and customer service delivery, while the main operator will manage the other aspect of network infrastructure, license, spectrum, among other things.

“We have carefully evaluated the VNO business model and studied the industry best practices in International markets including brands like Lebara, Tesco etc and will exercise these leanings including customer loyalty program in India,” said Arvind Bali.

MVNO rollout should take about 6-8 months depending on the number of telecom circles. Videocon Telecom has the required infrastructure including Billing platform (IN), service delivery platform, VAS platform etc. Since the basic infrastructure is already available, Videocon Telecom aims to re-launch the brand in 3-4 months.

Videocon Telecom plans to offer mobile services in select circles in a phased manner. The first priority will be to launch VNO in Punjab telecom circle, wherein Videocon Telecom is providing GSM mobile services and has 3 million customer-base with approx 10 percent customer market share.

Videocon Telecom plans to migrate its subscribers in Punjab on the MVNO platform to continue to provide mobility services with an added option of 3G / 4G data.