In a bid to expand its operations to tier-II cities across the country, the broadband service provider will invest around Rs 428 crore in next two years.
MUMBAI: In a bid to expand its operations to tier-II cities across the country, broadband service provider YOU Telecom will invest around Rs 428 crore in next two years.
"We will invest Rs 400 crore in next one year to set up operations in additional 11 cities. The new cities will be mainly tier-II across the country," YOU Telecom CEO EVS Chakravarthy said.
The company provides broadband services in 12 cities, including Surat, Ahmedabad, Rajkot, Mumbai, Hyderabad and Gurgaon and claims to have 150,000 registered subscribers.
"Due to expansion of our business, we plan to touch a subscriber base of 6,00,000 in three years' time," he said.
The company, which currently claims to have a 7.5 per cent market share, aims to take it to 15 per cent in a period of three years.
YOU Telecom has 70 per cent residential subscribers and 30 per cent business registrations, which mostly include SMEs.
"We want to take the ratio to 50:50 in next two years. For the purpose, we will buy remote management, security and remote backup solutions from US and European companies over next two years," he said.
These solutions would upgrade company's services and provide security solutions to the subscriber companies, he said. The company would invest around Rs 28 crore in next two years on buying these solutions, he said.
As a result of all these, the company targets Rs 350 crore revenue in next three years as against Rs 80 crore in 2006-07 fiscal, he said.
In the second phase of expansion, the company intends to take the big leap by entering overseas markets.
"We have not finalised the investment details, but we will establish overseas operations by mid 2008," he said.
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