The Indian mobile segment is growing at a phenomenal pace and Videocon – an international conglomerate based in India, wants a piece of it. It has announced that it will be joining an already crowded mobile services market under the banner of Videocon Telecom.
In spite of explosive growth of the mobile services segment, achieving profitability has become a daunting task for new comers due to the cutthroat competition. Videocon is obviously aware of the challenges it will be facing. Nevertheless, Videocon Group Chairman Venugopal N. Dhoot is confident that the company will break-even within two years.
Videocon will be investing Rs 14,000 crore over the next three years to build up its 2.75G EDGE GSM network. After its initial launch in Tamil Nadu, Videocon Telecom will rapidly expand over the next hundred days to cover hundred key cities across Punjab, Haryana, Gujarat, Kerala, Uttar Pradesh, Andhra Pradesh, Madhya Prasad, Maharashtra and Mumbai.
According to Mr Dhoot, Videocon Telecom will offer an unprecedented sub-one-paisa effective tariff. Videocon Telecom wants to suit all pockets with tariff plans that are transparent and simple.
Increased competition is usually better for the consumer. The Indian mobile services market is not an easy one to getting into. However, if anyone can do it, Videocon can.