Aircel Begins 4G trials in Andhra Pradesh

There has been an exponential increase in number of 3G users in Andhra Pradesh. This has prompted mobile network operator Aircel to start conducting trials of LTE (Long term Evolution) – 4G services in the state. Statistics reveal about 44 per cent of the 1.85 million subscribers Aircel has in AP use data services, including 12 per cent for 3G. This has not only enabled the company to double its revenues but also come up with the 4G trials plan.

Aircel Begins 4G trials in Andhra Pradesh

The private network operator believes it will take a while before they are commercially launched. Aircel is only the second cellular service provider after Reliance to bag 4G licence for AP Circle. The firm owns 20MHz of spectrum on 2300 MHz in 8 circles – Andhra Pradesh

  1. Tamil Nadu (including Chennai)
  2. West Bengal
  3. Bihar
  4. Odisha
  5. Assam
  6. North-East
  7. Jammu & Kashmir

Out of these 8 circles most of them are category C circles – that means Aircel has to offer 4G at a cheaper price to penetrate the market at tier II and tier III cities.

Deepinder Tiwana, AP Circle Business Head of Aircel,”The trials are currently on but we don’t have the required ecosystem, including the 4G-enabled mobile handsets, to launch the services commercially”.

“We have identified the priority segments and are accordingly drawing up our strategies to drive future growth. The private mobile phone operator, that was making a loss of about Rs 250 crore per annum till last year, is on the turnaround path. We will start making full-year profit from next year”, he further added.

Aircel was bearing a loss of about Rs. 250 crore per annum till last year. The decision hopefully will change the company’s fortunes.