Videocon Telecom invests around Rs 130 crore to upgrade its network to 2.75G EDGE

The company plans to spend approximately Rs 50 crore on marketing communication in the next few months

by exchange4media Staff
Published - Dec 3, 2014 8:32 AM Updated: Dec 3, 2014 8:32 AM
Videocon Telecom invests around Rs 130 crore to upgrade its network to 2.75G EDGE

Videocon Telecom has 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 six 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 approximately 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 telco has rolled out a full-fledged marketing campaign around it and had developed a logo unit for 2.75G EDGE network and has branded it  ‘pauney teen G” network to get customer attention. The telco plans to spend approximately Rs 50 crore 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, Videocon Telecom 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 approximately 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,  Bali added.

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