Videocon to invest Rs1,200 crore for 4G roll out

Videocon Telecom is to invest Rs1,200 crore in the next three years for 4G rollout in 29 cities across Uttar Pradesh (East), Uttar Pradesh (West) and Bihar circles.

The GSM operator will roll out six cities in first phase, followed by 12 cities in the next phase and 11 cities in the final phase.

Videocon Telecom holds 5 MHz liberalided spectrum in the 1800 MHz band and plans to utilise the entire spectrum for rollout of 4G LTE services in select cities.

It also plans to offer voice on overlay network in these key cities, while in the remaining coverage area, the telco will offer 2G voice on own network, the company said in a statement.

''Mobile telephony is now over 20 years old now in the country, with still predominantly voice play. Having lost the momentum that we built in 2010, we re-entered the industry just two years back. The voice market is already skimmed, with the incumbents in a dominating position having acquired a sizeable base of stable, loyal and high usage subscribers,'' said Arvind Bali, director and chief executive officer, Videocon Telecom.

''Given the market dynamics, it doesn't make sense for a new telco to compete in the voice domain with ever shrinking margins and high cost,'' Bali added.

According to Videocon Telecom, 4G LTE FDD technology is efficient on 1800 MHz and allows greater speeds and accommodates higher subscriber base. This will also give telecom operator the distinction of being the first company to offer 4G LTT FDD services on 1800 MHz in the country with digital voice.

The company also foresees intra-circle roaming (ICR) arrangements with other operators for 4G data.

Videocon Telecom plans to offer 4G data at 2G and 3G rates to encourage early adaptation, and will be offering bundled devices as well.