Update: Videocon Telecom has informed Medianama that its GSM business accounted for 41% of its total gross revenue. This translates to GSM revenues of around Rs 200.5 crore for the quarter.
The telco said that data now accounts for 6% of its total GSM revenue, which translates to data revenues of around 12.03 crore for the quarter. It now hopes to increase this contribution to 7.5% by the end of this fiscal. Videocon Telecom also noted that around 41% of its revenue earning base uses data every month and hopes to increase it to 46% by the end of this fiscal.
Earlier (Jan 14): Videocon Telecom has reported total gross revenues of Rs 489 crore for the quarter ended December 31, 2014 (Q3-FY15), up 34% from Rs 365 crore in the same quarter last year. Note that this include revenues from Videocon’s GSM business, its NLD/ILD business and its Punjab wireline business.
Videocon Telecom CEO Arvind Bali attributed this growth to the organic growth in its subscriber base & minutes of usage, and their focus on data penetration & usage and ARPU among others. However, the company hasn’t disclosed any specific information on how its GSM business is performing, except for the fact that the GSM revenues grew by 53% year-on-year (YoY) and its minutes of usage grew by 30% YoY.
Videocon also says that its data revenues grew by 113% on a yearly basis with a 30% improvement in its realization per GB, however the company hasn’t disclosed any specific revenue numbers. We’ve written to Videocon Telecom for more information on this and will update once we get a response.
That being said, it’s worth noting that Videocon is one of the smallest telecom players in the country, with only 9 million subscriptions across four operating circles (Punjab, Haryana, Gujarat and Madhya Pradesh). Furthermore, the telco’s active base is also among the lowest in India. As per TRAI’s latest numbers, only 52.2% of its total subscriptions were active as of November 2014.
Looking to sell 49% stake: Interestingly, this announcement comes at a time when Videocon Group is looking to sell a significant 49% stake in Videocon Telecom. Earlier this week, Videocon Group co-promoter Rajkumar Dhoot had said that they are even ready to give away managment control if they get a “good offer”. He added that they are also keen to participate in upcoming 4G LTE spectrum auction.
Shelving 4G plans
Interestingly, Bali had said last month that they have shelved their 4G plans due to poor acceptability of the service launched by other telcos. Instead, they had upgraded Videocon’s 2G network to 2.75G EDGE network.
Videocon Telecom had earlier stated plans of launching 4G services in India in December 2014. While the company hadn’t secured any spectrum during the Broadband Wireless Access spectrum auctions, it was looking to use the 2G spectrum acquired in the November 2013 spectrum auctions and roll out 4G services using the FDD LTE technology. Back then, it had stated plans of offering this service in eight Indian states including Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Gujarat, UP (East & West), Bihar and Jharkhand.