With a Top line Revenue of 1974 Cr; Videocon Telecom registers 53% Revenue growth in FY 2014-15 over last financial Year

With a Top line Revenue of 1974 Cr; Videocon Telecom registers 53% Revenue growth in FY 2014-15 over last financial Year 
The telco also reported EBITDA positive in its Punjab Telecom circle

~ The telco, one of the fastest growing Telecom players reported an impressive 53% growth in its Top-line Revenue in FY 2014-15 over previous financial year ~
~ The telco also reported EBITDA positive in its Punjab telecom circle, which is one of the fastest in telecom industry and history ~
~Achieving 19% incremental Customer market share in FY 2014-15, the telco reported a subscriber base of 1 Cr in its 4 operational as on March 2015~
~ Attained 147% growth in Data revenue with a 28% improvement in NRPM against last FY in its GSM business ~

New Delhi (India) April 15, 2015: Videocon Telecom the versatile, friendly and dynamic telecom brand of the Indian conglomerate Videocon group, posted an impressive 53% growth in its Top line Revenue in FY 2014-15 over last financial year with a consolidated Top line Gross Revenue of 1974 Cr including its GSM business, NLD/ILD and Punjab Wireline business. Earlier last year, the telco talked about its plans for a Top line Revenue of 2000 Cr in FY2014-15 and has been able to deliver 99% of the same. Backed by its aggressive customer acquisition strategy, Videocon Telecom achieved approx 19% share of incremental customer market share in its 4 operational circles in FY2014-15. This has helped the telco to achieve an impressive growth of 38% in its Subscriber Base and cross the 10 Mn mark subscriber base as on March 2015. In addition, the telco grew its Minutes of usage by 32% in 2014-15 over previous financial year. The company also reported a 28% improvement in its NRPM (Net rate per min) during the year. Owing to telco’s strategy to upgrade its network to 2.75 G EDGE, the telco witnessed a substantial growth in its data revenues, attaining an impressive 147% growth in data revenue that surpasses the industry growth by almost 3 times. Now, Data contributes to over 11.5% of Gross Revenue (GR) and the telco aims at taking up the data contribution to 15% of GR by end of FY2015-16. Owing to its business focus and operational efficiencies, the telco reported EBITDA positive in its Punjab GSM operations circle in March 2015 that is one of the fastest in the telecom history. As part of its network expansion drive, the telco announced 2489 new cell sites and 231 new exclusive stores in existing circles. The telco also plans to acquire over 10Mn subscribers and deliver a consolidated Top line Revenue of 3000 Cr in FY 2015-16 including its GSM business, NLD/ILD and Punjab Wireline business. 

Mr. Arvind Bali, Director & CEO, Videocon Telecom says, “Year 2014-15 has been quite eventful and fulfilling for us. Just to list some of our achievements, we achieved 99% of our targeted Gross Revenue of 2000 Cr and grew our Top line by 53% over previous financial year. Also, we have crossed 1 Cr subscriber mark in our 4 circles, and the biggie being EBITDA positive in Punjab telecom circle.
Being a new entrant, our strategy was to attain incremental Customer and Revenue market leadership in our operational circles, and we have been able to achieve the same with approx 19% incremental customer market share in our 4 circles with a dominant leadership in Punjab and Haryana during last financial year. 
We aim to maintain and accelerate this growth rate further. We are targeting over 10 Mn subscriber acquisitions and a Top line Revenue of 3000 Cr in Financial year 2015-16 and EBITDA positive in MP and Haryana telecom circles.” Mr. Bali added. 

About Videocon Telecom
Videocon Telecom, the next-generation GSM mobile service network was launched by $10 billion Videocon Group. The company has partnered with global technology leaders to create a robust infrastructure featuring future ready mobile technologies. Powered by the most advanced GSM-EDGE network, Videocon Telecom aims to redefine the Indian mobile telecommunications industry by leveraging a combination of the parent company’s strong brand recall and retail reach with a spirit of innovation and customer centricity. Videocon endeavours to transform the life of every Indian consumer by changing the very paradigm of the way he or she communicates.
Videocon Telecom today symbolizes the market innovations and customer offerings rooted in the demands and needs of the Indian consumer. Videocon Telecom has notched up a subscriber base of over 9.5 million subscribers within 2 years of operations, a testament to the brand’s customer focused strategy. The company has invested significantly in research and development as well as in customer service to offer consumers innovative products and a superlative experience.

Videocon Telecom invests approx Rs 130 Cr to upgrade its network to 2.75G EDGE, a 3G standard technology, to enhance Customer experience on data speed. Rolls out a full-fledged marketing campaign to get Customer attention

~ 2.75 G EDGE (Enhanced Data for GSM evolution) a 3^rd Generation standard technology delivers consistent data speeds of up to 473.6 Kbps, which is approx 8 times the  speed of conventional 2G Network. The telco has invested around Rs 130 Cr for up gradation of its network to 2.75G EDGE~

~ Approx 80% of the Mobile internet users use 2G handsets, which gives the telco a larger audience  & give them 3G like experience without upgrading their handset, that too at 2G rates~

~The telco is already seeing a huge surge in its data usage, with daily consumption growing by over 51% propelled by increase in unique data users from 37% to 40% and average usage per day per customers going up from 16MB to 22MB~

~The telco which has created this interesting space between 2G and 3G plans to make huge marcom spends on the same to own the space ~

New Delhi, India, December 2, 2014: Videocon Telecom, the versatile, friendly and dynamic telecom brand of the $4 billion worth Videocon Group, today announced their network upgrade to 2.75G EDGE (Enhanced Data for GSM Evolution), which is a 3G standard Technology. This 2.75 G EDGE Network is capable of delivering consistent speeds up to 473.6 Kbps which is almost 6 times the maximum speeds delivered by conventional 2G Network.

The company’s strategy to upgrade to 2.75G EDGE Network is based on the fact that very large audiences of approx 80% of Mobile internet users still have 2G handsets and can be catered to by an enhanced 2.75G EDGE Network. Further, the 3G telcos offer 3G Network only in select pockets, which deteriorate the customer experience while moving from 3G pocket to 2G network. here with a seamless 2.75G EDGE network, the telco will be able to offer a seamless network and experience to the Customers. And finally, the telco will have the USP of offering a 3G like experience to its customers at 2G rates, that too on their existing 2G handsets, without upgrading their handsets. The upgrade of our Network also fulfills the customer’s need of faster download speeds.

The telco has rolled out a full-fledged marketing campaign around it and had developed a very striking and prominent logo unit for 2.75G EDGE network and has branded it  ‘pauney teen G” network to get customer attention. The telco plans to spend approx Rs 50 cr on marketing communication on this campaign in next few months.

The network has already started to deliver promising results and within a week of commissioning of this enhanced 2.75G EDGE network, the telco has experienced a 51% growth in its daily data consumption, which is propelled by an increase in unique data users which has grown from 37% of its Revenue earning base to 40% and an increase in average usage per data user going up from 16 MB to 22 MB per day.

                                                                                                                   

The telco is confident that the upgrade will go long way in extending an enhanced data experience to its customers which will ensure Customer stickiness and Revenue growth.

Arvind Bali, Director & CEO, VideoconTelecom said: “Growing Mobile internet comes with a huge opportunity and challenges for a 2G player like us. With the growing smart phone penetration, customers are seeking faster data speeds, that too at very reasonable rates. With still approx 80% of mobile data users on 2G handsets, there is a very large audience that can be catered with a technology which is best of both worlds, i.e. enhanced speeds at 2G rates.

Our strategy is to cater to this 80% customers who are on 2G handsets and aspire for 3G like experience that too at affordable prices, and this is where we strategized to upgrade our network to 2.75G EDGE, and why just limit our reach to 2G handset customers, when all 3G handsets are 2G compatible by default.

We are already seeing a huge surge in our data consumption by over 51% already, data user penetration has grown by 3% to touch 40% and average data consumption per customer per day has gone up by 37% within a week of network upgrade. This is a testimony of our Customer experience with the upgrade, and the fact that our strategy has been apt.”

Not being a 3G player is no longer a constraint for us, we have created this interesting space or call it category of 2.75G EDGE between the 2G and 3G networks, and we will own this space, Mr. Bali added.

About Videocon Telecom

Videocon Telecom, the next-generation GSM mobile service network was launched by Rs. 25,000 crore Videocon Group.  The company has partnered with global technology leaders to create a robust infrastructure featuring future ready mobile technologies. Powered by the most advanced GSM-EDGE network, Videocon Telecom aims to redefine the Indian mobile telecommunications industry by leveraging a combination of the parent company’s strong brand recall and retail reach with a spirit of innovation and customer centricity. Videocon endeavors to transform the life of every Indian consumer by changing the very paradigm of the way he communicates.

Videocon Telecom today symbolizes the market innovations and customer offerings rooted in the demands and needs of the Indian consumer. Videocon Telecom has notched up a subscriber base of over 9 million subscribers within a year of operations, a testament to the brand’s customer focused strategy. The company has invested significantly in research and development as well as in customer service to offer consumers innovative products and a superlative experience.

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