Mumbai: In a bid to expand its operations to tier-II cities across the country, broadband service provider YOU Telecom will invest around Rs428 crore in next two years.
“We will invest Rs400 crore in next one year to set up operations in additional 11 cities. The new cities will be mainly tier-II across the country,” E V S Chakravarthy, the chief executive officer of YOU Telecom told PTI.
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% market share, aims to take it to 15% in a period of three years.
YOU Telecom has 70% residential subscribers and 30% 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 Rs28 crore in next two years on buying these solutions, he said.
As a result of all these, the company targets Rs350 crore revenue in next three years as against Rs80 crore in 2006-07 fiscal, he said.