Videocon Telecom to invest Rs 1,200 crore in 2012 to expand mobile network

Telecom Lead India: Videocon Telecommunications is
planning to invest Rs 1,200 crore in 2012 to expand its mobile network in


Despite the recent troubles due to the Supreme Court
order, we are going ahead with our Capex plan for 2012. We will be expanding our
presence in few circles in North including Punjab,” said a senior official with
Videocon Telecommunications.


In 2008 Videocon got 2G spectrum for 21 circles, and in
Punjab they operate as brand sharing agreement between QTL and Videocon.


Videocon mobile services are already up in Tamil Nadu,
Chennai, Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, UP East, UP
West, Himachal Pradesh.


According to the official, Videocon Telecommunications
has already invested around Rs 10,000 crore to build the network.


DTH, mobile phone and mobile services are important parts
of Videocon’s long-term business strategies.


We will be participating in the forthcoming spectrum
auction as well and will continue to expand presence. However, due to the
current turmoil, we are unable to predict that whether we will invest
significantly in all 22 circles or in select few circles,” the official added.


The official also noted that the company is doing well in
India. The uncertain market conditions never influenced us to go slow in the
Indian telecom market. After spending Rs 10,000 crore in telecom business, our
focus is to grow here,” the official added.


Videocon Telecommunications along with Uninor, Sistema
Shyam (MTS India) gained market share in February 2012 in the wake of Supreme
Court’s decision to cancel 2G licenses in 122 telecom circles in India.


Videocon Telecommunications gross revenue up 10.35% in Q3 2011


According to TRAI data, Videocon Telecommunications
reported gross revenue of Rs 141.39 crore for the quarter ended 31, December
2011, up 10.35 percent against Rs 128.13 crore for the quarter ended 30,
September 2011. 


For the quarter ended 31 December 2010, Videocon’s gross
revenue stood at Rs 99.86 crore.


During the quarter ended 31, December 2011, Videocon
Telecommunications’ subscriber base recorded at 5.44 million with 0.40 percent
market share, against 6.27 million for Q2 2011, showing 13.18 percent decline.[email protected]