Videocon faces tough competition: Planning to sell 26% of Videocon Telecommunications

Videocon Industries is busy looking for possible buyers to sell 26% of its telecom arm Videocon Telecommunications that has 1.9 million subscribers and has a market share of 0.31%. The company in the recent past had started discussion with South Korean company SK Telecom, UAE’s Etisalat and Turkey’s Turkcell.  By selling 26% of Videocon Telecom, the main company will raise around INR 15,000 crores which will be employed to improve services and expand operations to improve customer base.

According to a source, Videocon is struggling to keep up with the major players like Bharti Airtel, Reliance Communications, and Vodafone due to fewer offerings to the customer.

The telecom company currently operations in Tamil Nadu, Punjab, Haryana, Mumbai, Gujarat, Kerala, Madhya Pradesh, UP East, UP West and Himachal Pradesh. Videocon recently announced 1 paise/sec international calling to US and Canada. Such schemes may help the company in fetching new customers, but if the company wants a stand in the market it needs to improve service and infrastructure to handle larger customer base.