By Md. Taraq Junaid
On Monday, Vodafone India signed a MoU (Memorandum of Understanding) with Mamta Banerjee to invest Rs. 3,000 crore in West Bengal. The UK-based telecommunication giant aims to increase its service capacity in the state and also plans to invest in new businesses over a period of next three years.
Bengal Global Business Summit saw Vodafone carry forward the vision of making Bengal a business hub. | Photo Courtesy: Hindu Business LineThe association came through after the two-day Bengal Global Business Summit 2017 (BGBS17) held in Kolkata from 20th-21st January. At Vodafone, we are very enthused with the governments vision of creating Bengal a business hub and keen to be a partner in its delivery, said Arvinder Singh Sachdev, the Business Head of Kolkata and West Bengal Circles for Vodafone India, after announcing their investment plans. Presently, the telecom company has a user base of about 2 crore customers in the Kolkata and West Bengal circles.
The introduction of Reliance Jio has forced almost all the major telecom operators to restructure their organisations in an attempt to maintain their ground in the market.
Vodafone has rejigged its entire leadership structure by halving the number of decision making people from four to two aiming to reduce the time spent on making important decisions and optimizing resources.
Being one among the five biggest markets of the company in India, West Bengal-Tamil Nadu will be included in the direct markets cluster. The decision makers in these target markets will report directly to Naveen Chopra, Chief Operating Officer (COO) of Vodafone to ensure direct translation and implementation of development/marketing strategies.
[su_pullquote align=”right”]The introduction of Reliance Jio has forced almost all the major telecom operators to restructure their organisations in an attempt to maintain their ground in the market.[/su_pullquote]
We remain deeply invested in and committed to West Bengal and are pleased to announce our investment plans in the state, Mr Sachdev added. The company also aims to generate substantial employment opportunities in the state. Currently, Vodafone, directly and indirectly, employs around 1,500 people in the state. One of the largest international investors, Vodafone has invested more than 8,400 crores in the state. Around 200 crores of investment are expected in the first six months of FY17. Most of the investments were aimed at upgrading the network and increasing the coverage area in the state.
Competition from Reliance Jio
The generous investments reflect the cut-throat competition in the telecommunication sector at the moment. Airtel and Vodafone have been on an investment spree following the introduction of Reliance Jio telecom services. Airtel has already invested Rs. 13,000 crore in West Bengal and another Rs. 3,500 crore investment is under implementation, spread over the next few years said Rakesh Bharti Mittal, Vice Chairman of Bharti Enterprises, at the BGBS17.
[su_pullquote]Airtel and Vodafone have been on an investment spree following the introduction of Reliance Jio telecom services.[/su_pullquote]
The fate of these investments rests on the performance of the popular Reliance Jio Telecom Services, which puts an end to its Welcome Offer on March 31st, 2017. The efforts of telecom operators to combat the free services, rolled out by Reliance Jio in September 16, were commendable. Let us wait and watch how they fight it out when Jio starts charging its customers for the services.