9.4.10

Vodafone crosses 100 m users



A day before the 3G auctions begin, Vodafone Essar, the Indian arm of UK’s Vodafone Group, crossed the landmark 100-million subscriber mark in India. Vodafone, which is among the nine cellular operators that will bid for 3G spectrum in 22 circles starting Friday, is the third telecom services provider to cross the 100-million mark in the country. Bharti Airtel was the first to achieve the milestone in May 2009, while Reliance Communications clocked the feat on March 15 this year. Marten Pieters, managing director and CEO, Vodafone Essar, said: “The road ahead is not so much about how soon we can get to the next 100 million subscribers. It is all about how we can drive revenues in this market, given the fact that most operators have reported flat revenues for six quarters in a row.’’ The company, which has invested £3.5 billion (around Rs 20,000 crore) over the past three years, is keen to expand operations in the country. “Our shareholders are willing to give us more money to invest in the country as long as it makes good business sense. We need to show returns, which is not a major issue in this market, but the government needs to create the environment.’’ Vodafone is targeting new areas of growth and new revenue streams. “India is one of the fastest growing economies in which the service sector’s contribution is the largest. From merely looking at retail customers, we would be keen on enterprise business (Vodafone to corporates), carrier business (between telecom operators) and even data services to drive the next phase of growth,’’ he said. Vodafone has high expectations from data services, given that there is more opportunity now with 3G likely to become a reality soon. Moreover, with 60% of new subscribers coming in from what the CEO terms “upcountry markets’’, the company is eager to get down to brass tacks in the rural arena. “We have seen considerable growth in the rural market, though penetration is far lower,’’ said the CEO. “In the last 18 months, we have expanded and built our network in the ‘C’ circle, which comprises Bihar, Orissa, Assam, J&K, Himachal Pradesh and Madhya Pradesh. A few weeks ago, we even crossed the 3 million subscribers mark in Bihar, all in the span of 1.6 years,’’ he said. India happens to be the fastest-growing unit of Vodafone’s global network. With several telecom majors jumping on to the 3G bandwagon, the CEO is eager for the auctions “and the games’’ to begin. “Though this business is capital intensive and we have seen certain setbacks in terms of profitability, there exists a huge growth potential in India. We are clearly here for the long haul,’’ he added.

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