Tikona Digital Networks, launched in 2008, has been a popular name and is deploying broadband services in 25 cities across India.
Growth story of Tikona Digital Networks
During the company’s launch, the global economic environment was unstable. However, Tikona managed to raise funds amounting to $110 million from international companies like Goldman Sachs, Everstone, and Oak Investments. During that time, 4G was non-existent; teledensity was 80%, while broadband penetration was only 1%. When other companies were looking for voice spectrum, Tikona opted for wireless broadband. With wireless and 4G coming to India, the potential of broadband has increased substantially.
Tikona established its business on a free-for-all spectrum. It offers plans with speeds of up to 4 Mbps. As a result, it has lightened its risks by earning profits from the unlicensed spectrum.
Tikona has its headquarters in Bhandup, Mumbai. It acquired HCL Infinet, a networking services company, in 2011. Subsequently, Tikona got some bigwigs as customers like HDFC, Cipla, IndiGo, and Mahindra. The price Tikona bid for 4G was six times lesser than what other companies bid for 3G. The circles acquired by the company will cover 30% of the population.
Current scenario, Tikona Digital Networks
At present, Tikona has 2.5 lakh customers spread out in 25 cities. This consists of 12,000 SMEs and 1,000 large corporations. It has also acquired 4G licenses and spectrum in five states. This presents a huge market for the company.
The average revenue of the company per user is INR 600. The company reached the profits in its third year itself whereas other broadband companies generally take 12-14 years for leveling out.
Broadband is distinct from voice technology. It needs Information Technology (IT) support round the clock to solve any problems. Tikona has a wide experience in IT services. It is all set to launch its 4G services next year. The prices of 4G will be lower than 3G because of lower spectrum rates. Only pricing and customer experience will help any operator to succeed in 4G. Tikona has an edge over other companies due to its wide experience in dealing with broadband customers. Tikona is expected to exploit this opportunity to the fullest and emerge a winner in this field as well.