Indian mobile service provider Videocon Telecom has selected Huawei to deploy 4G LTE-ready Packet Core technology. Earlier, Huawei lost to Nokia in the 4G infrastructure deal from Videocon.
According to earlier media reports, Huawei is fighting a court case against Videocon Telecom.
Last year, Nokia Siemens Networks (currently known as Nokia) has bagged 4G LTE contract from Videocon Mobile Services (currently known as Videocon Telecom) for rolling out 4G on TD-LTE technology in seven circles. Nokia rivals Ericsson, ZTE, Alcatel-Lucent and Huawei lost in the race.
Also read: Nokia bags 4G contract from Videocon for 7 circles
Arvind Bali, director & CEO of Videocon Telecom, said: “This network will provide a larger data coverage and reduce the overall CAPEX and OPEX leading to an improved profitability and lower costs to end users. Once the network is fully commissioned, our customers can expect improved data quality and a richer broadband experience.”
As per today’s announcement, Huawei will supply the Evolved Packet Core (EPC) technology for the Core Network. The EPC will be implemented to cater to Videocon Telecom’s nation-wide data services rollout.
On June 4, Dell’Oro Group said that the overall Wireless Packet Core market grew twenty sixpercent during the first quarter of 2014 versus the year-ago period. The higher growth portion of the market that is used to manage LTE wireless networks, called Evolved Packet Core (EPC), experienced significantly higher growth than the total market.
Videocon Telecom is planning to cover the cities of Ahmedabad in Gujarat, Indore in Madhya Pradesh-CG and Panipat in Haryana telecom circles in the initial phase.
Videocon Telecom to launch 4G LTE in Gujarat, Madhya Pradesh, Haryana in Q4
Videocon Telecom, which achieved revenue of Rs 1,049 crore in fiscal 2013-14 and targeting to achieve Rs 2,500 crore turnover during fiscal 2014-15, said the LTE-ready infrastructure will be extended to other cities and towns in the 6 telecom circles of Gujarat, Madhya Pradesh-Chhattisgarh, Haryana, UP-East, UP-West and Bihar in the coming phases, said Videocon Telecom.
The Capex spending by Videocon Telecom does not excite any big network vendors in India. Videocon Telecom plans to spend Rs 1,240 crore during fiscal 2014-2015 against Rs 3,500 crore earmarked by Idea Cellular, one of its rivals. Capex of Idea Cellular and Videocon are relatively very small as compared with Capex plan of American telecoms such as Verizon, AT&T, Sprint, etc.
Videocon Telecom plans Rs 1,240 crore investment in FY 2014-15
In April, Videocon Telecom said it would invest Rs 1,240 crore towards Capex in FY 2014-15. Videocon Telecom will be investing in its existing 4 telecom circles in network & IT infrastructure and on other technological advancements.
Cai Liqun, CEO of Huawei India, said: “Videocon Telecom can leverage the service-agile platform to monetize on new data services and significantly increase their revenue potential on new IP-based multi-media services.”
Baburajan K
