Marten Pieters, chief executive officer of Vodafone Essar said that the company plans to spend $400 million to $500 million on its third-generation services. This facility will be launched in the first quarter of 2011.
The company plans to do this by supporting it through bank loans and issuing a few new shares to its existing shareholders. In May this year, Vodafone paid a huge amount to gain spectrum (radio frequency) in nine service areas. The company plans to launch its services in a phased way. 3G services will be introduced in cities like Delhi, Mumbai, Chennai, Kolkata, Maharashtra, Gujarat, Tamil Nadu, Haryana, Uttar Pradesh (East) and West Bengal, Sanjoy Mukherji informed.
3G services to all
Vodafone is also in talks with quality and long term operators, like Bharti Airtel and Idea Cellular, to offer 3G services in areas where 3G airwaves are not available. The company aims to offer 3G services at competitive prices. In fact, an array of services would be offered at different prices keeping in mind its use and location.
Vodafone Group’s chief executive Vittorio Colao had said: “I don’t think 3G services here will imply all you can use plans — these are being withdrawn from European and US markets. In India, the amount of frequencies are less and it is not compatible with such plans. Data will be segmented and the plans will be tailor-made for different segments of the population.”
In India, 3G usage is likely to go up. The company aims to extend its customer base and is willing to increase its spending to attain the desired outcome.