Uninor sees high-speed data as ‘game-changer’

Uninor is on the hunt for high-speed data spectrum, including in the 900 MHz band, through the upcoming auctions and other means such as an acquisition, with Videocon Telecom being "a viable option" for a buy, its new chief executive said.

We want to prepare ourselves as the market is changing from being voice-centric to data-centric in the future," Vivek Sood told The Economic Times. "This would mean more data spectrum."

He, however, added that while 3G and then 4G would be the way to go for the industry in, say, two years from now, there is still juice in 2G data with just 27 per cent of its nearly 44 million users using mobile internet. He added that for now, the company would continue playing its 'Sabse Sasta' card to attract and retain subscribers, which has seen it gain 1 percentage point user market share in 2014.

Backed by Norway's Telenor Group, which now fully owns the company, Uninor offers 2G prepaid services in six circles, but doesn't have a 3G bandwidth. And, with 4G not expected to be widely adopted for some years now in India, analysts fear Uninor may be left far behind in the rush by operators to bag higher-paying data customers unless they get data airwaves soon.

Sood admitted that the company would in time need to migrate to the 3G and 4G technologies and said it will upgrade its network to support the surging data-driven traffic over the next 15-18 months, which would include improving transmission, network transformation and acquiring spectrum. "The game is changing now".

Uninor on Monday applied for acquiring airwaves in the auctions beginning 4 March, where the government is putting up 177.8 MHz in efficient but expensive 900 MHz band, 99.2 MHz in 1,800 MHz band and 5 MHz in 2,100 MHz band that is used for 3G services.

Sood, 50, who took over as CEO around two months back, said banks are willing to fund the unleveraged company in their expansion efforts.

When asked specifically whether Uninor would be interested in acquiring Videocon Telecom, which has liberalised spectrum in the 1800 MHz in seven circles but operates in only four, Sood said: "Yes, it's a viable option. I don't know what they are thinking, but there is an obvious compatibility since both of us have got the liberalised spectrum".