Indian telecom sector will witness more competition from this month with Videocon-owned Datacom’s decision to launch mobile operations in Mumbai on February 20.
It plans to cover the entire country within 18 months.
“We will complete the pan-Indian roll out in next 18 months,” Videocon Industries President & Vice Chairman Pradeepkumar. N. Dhoot told PTI here.
Datacom, a subsidiary of consumer durables major Videocon Group, was one of the eight new operators who were given licences in January 2008 to provide nation-wide cellular services.
To be renamed as Videocon Telecommunication Ltd, Datacom has earmarked an investment of Rs 9,000 crore and is looking at becoming profitable in 3-5 years.
“We hope to become profitable in 3-5 years,” Mr. Dhoot said.
Of Rs 9,000 crore, Rs 5,200 crore has already been invested, he said, adding that the funding would be generated from internal accruals and loan from banks.
On plans of setting up mobile networks, Mr. Doot said: “The company would rent up the towers, it works out cheap.”
When asked whether Videocon would exit the telecom business, he said, “If that was so, we would have done it by now. There was a chance earlier. But yes, in times to come and in due course, we will take a partner, but not today.”
