Videocon Telecom was a leading Indian telecommunications company that operated from 2007 to 2018.
It was founded by Venugopal Dhoot, the chairman of the Videocon Group, a well-established Indian conglomerate.
The company launched its services in 2007, initially focusing on providing 3G and broadband services to customers across India.
Videocon Telecom operated in 21 circles across the country, offering a range of services including voice, data, and value-added services to its subscribers.
The company's services were available in various states, including Maharashtra, Gujarat, and Madhya Pradesh, among others.
Videocon Telecom's network infrastructure was designed to provide high-speed internet and voice services to its customers.
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Videocon Telecom's Business Strategy
Videocon Telecom is open to partnerships and investments to grow its business.
The company is looking at bidding for radiowaves in the next auctions, apart from using spectrum augmentation technologies.
Videocon Telecom had plans to bid for additional spectrum in Delhi, Punjab, and Madhya Pradesh & Chhattisgarh circles, but decided against it due to the high cost of spectrum.
The company is focusing on rolling out its 4G LTE network in its existing circles, which will take around 6-8 months to complete.
Videocon Telecom expects to be among the first to rollout 4G on 1800 MHz LTE-FDD in India, and is already on track to meet this goal.
Sale of Spectrum
In November 2015, Videocon entered into an agreement with Idea Cellular Ltd. to sell its spectrum in Gujarat and Uttar Pradesh (West) for ₹3,310 crore (US$390 million).
Videocon had been looking to exit the telecom sector for some time, and Airtel offered to purchase spectrum in all six circles in which Videocon operated for ₹4,428 crore (US$520 million).
By March 2016, Airtel had entered into a definitive agreement with Videocon to purchase 2 x 5 MHz spectrum in the 1800 MHz Band in all six circles that Videocon had been allotted by the government.
On 24 May 2016, Airtel announced that the deal had successfully been completed.
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Offer Mobile Services as Virtual Operator
Videocon Telecom's Business Strategy includes offering mobile services as a virtual operator. This allows the company to provide mobile services to customers without having to build and maintain its own physical network infrastructure.
By partnering with other telecom companies, Videocon Telecom can offer a range of mobile services to its customers, including voice, data, and SMS services. This is a cost-effective way for the company to enter the mobile market and offer services to customers.
Videocon Telecom's virtual operator model also enables the company to focus on customer acquisition and retention, rather than investing heavily in building and maintaining its own network. This allows the company to be more agile and responsive to changing market conditions.
Partnerships and Collaborations
Videocon Telecom is open to exploring partnerships to drive its business growth.
The company's Chief Executive Officer, Arvind Bali, has mentioned that they are looking at partnerships and investments to grow their business.
Videocon Telecom had plans to bid for additional spectrum in Delhi, Punjab, and Madhya Pradesh & Chhattisgarh circles, but decided against it due to varied reasons.
Spectrum is a very expensive resource, and the company is focusing on using spectrum augmentation technologies instead.
The company is also gearing up for its 4G LTE rollout, which is expected to happen in 6-8 months.
Videocon Telecom is in talks with other telecom operators for frequency sharing agreements in Madhya Pradesh and Haryana service areas.
This move is aimed at improving spectral efficiency and quality of service in these areas.
Spectrum sharing will allow operators to pool their respective spectrum for usage in a specific geographical area, thus complementing each other’s needs.
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Frequently Asked Questions
Who has taken over Videocon?
Twin Star Technologies has taken over Videocon, bringing it under the control of Mr. Agarwal's empire through his holding companies Vedanta Resources and Volcan Investment Cyprus.
Why did Videocon fail in India?
Videocon failed due to aggressive diversification and excessive debt, which led to its insolvency. This was a result of the company's rapid expansion and poor financial management.
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