Delhi is a key circle for Vodafone India. This is reflected in the significant investments the operator is making to enhance its infrastructure and service offerings in Delhi NCR. The company already has close to 3 million 3G subscribers and is counting on data services to drive future growth. Apoorva Mehrotra, business head, Delhi circle, talks about the company’s performance in the circle and its growth plans...
How has Vodafone India’s performance been in the Delhi circle?
Vodafone is a leading telecom operator in Delhi NCR with over 9.5 million subscribers. The past year was an eventful one for the industry. Despite prevailing market uncertainties, the circle witnessed a strong operational performance, increased revenue market share (RMS) and improved margins. Our service revenues grew by 9.4 per cent, driven by a 4.4 per cent increase in the customer base, strong growth in incoming and outgoing voice minutes, and 60 per cent growth in data revenues. Our RMS stands at an impressive 26.5 per cent (as of September 2014). We have made significant investments in our network, technology and people, and will continue to build our capabilities to provide quality solutions and strengthen our focus on the data, mobile money and enterprise segments.
How does Vodafone plan to gain an edge over its competitors in Delhi?
3G service quality will determine customer movement and service uptake. Hence, we have invested in strengthening our networks and ensuring that service levels keep rising. In Delhi NCR, we have 2.6 million 3G subscribers and over 5,500 network sites, making ours Delhi’s largest 3G network. We have worked on enhancing our network by transforming the existing 2G sites into 3G sites and installing new 3G sites to reduce congestion and meet capacity needs. In Delhi NCR, we have one of the largest penetrated distribution networks, which is two-tiered to service the market better and is classified on a geographical basis. Our distribution is backed by strong service support and we have 108 distribution points, which ensure ease of access and unparalleled service for consumers. We have one of the largest retail footprints in the country. In Delhi NCR, we are bringing a world-class retail experience to our retail touch points, including global design and exclusive stores, mini stores, Angel stores and multibrand outlets, as well as product-based initiatives.
What are the key business opportunities?
With the increase in smartphone screen sizes, and a reduction in their prices and in data tariffs, there is a clear indication of robust growth in mobile internet usage. In both urban and rural pockets of Delhi NCR, we have witnessed a tipping point of non-voice and a data explosion. As smartphone penetration grows, this expansion of 3G sites will help Vodafone address the associated data demand. We expect 3G to be a mainstream mobile internet service for at least two to three years, after which we will see a mix of long term evolution and 3G, while 2G usage continues. The government and the industry have realised the need to leverage the mobile platform for providing banking and financial services to the unbanked population. The mobile wallet will find takers across demographies, leveraging technologies like near field communication, internet, video calling and new value-added service features. We already have around 150,000 users through the Vodafone m-pesa service. Mobile governance is another big opportunity for the government and the industry. It facilitates transparency, convenience and reach for the roll-out of development programmes.
How do you plan to tap the enterprise market?
Vodafone Business Services provides total telecom (voice and data) solutions across the mobility and wireline platforms to serve the needs of the growing enterprise market. With global expertise and the knowledge of local markets, we provide mobile and wireline services to global and national businesses equipped with superior network infrastructure and a 24x7 network operations centre. A key issue facing Indian businesses today is predicting how their world will look tomorrow. The answer for any business is to be ready for anything. We recently introduced “Ready Business”, our global positioning approach that offers an integrated solution allowing companies to be scalable, agile, efficient and customer centric. This solution has the ability to make real mobility an omnipresent reality for enterprises.
What are your views on the policy and regulatory environment?
The new governments in Delhi and at the centre have brought in a positive sentiment for the corporate sector, as have the announcements regarding Digital India and converting Delhi into a smart city. We are committed to offering innovative products and best-in-class services and will explore new opportunities to do so.
What are the key challenges faced in the Delhi circle?
Being the national capital and sharing borders with Uttar Pradesh and Haryana makes Delhi a unique market. An approach that works in one part of the city will not find takers in another. The market demands a customised approach and this strategy has brought us closer to our customers. Delhi has extended beyond the erstwhile NCR and includes Ghaziabad, Faridabad and Greater Noida. As a leading operator in the region, our services and products have found major uptake.