Videocon, which is the latest entrant in the mobile service arena, which has seen the likes of other new players like Tata Docomo, MTS and Uninor marking their entry last year, is marketing its service with a “sub 1 paise effective tariff” to attract customers.
“We are targeting 100 million users in three years and hope to break even in two years,” Mr Dhoot said, confident of turning profitable by being a volume player. To begin with, Videocon will launch its service across 100 cities in the Haryana, Gujarat, Kerala, Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Maharashtra and Mumbai circles in 100 days. It hopes to be operational at the pan-India level by September end.
Mr Dhoot said he was also confident of bagging 3G licences, which Videocon has bid for in all circles, barring Delhi and Mumbai. The Videocon Group reported revenues of $4 billion in fiscal year ending March 31, 2009. It hopes to touch the $10-billion mark by 2013, out of which close to $4 billion would come from its mobile service operations. Of the total investment of Rs 14,000 crore in the new business over a three-year period, Rs 7,000 crore has been tied up with SBI.
The company has tied up a network of 70,000 base stations across the country. In Tamil Nadu, the same stands at 3,000. Videocon Mobile Services is envisaging an investment of around Rs 1,500 crore in the state with presence across 50,000 retail outlets by the year-end.
The group went in for an image makeover, reinventing itself with a new logo in 2008. Last year, it hopped on to the mobile handset bandwagon and also launched its direct-to-home service.
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