Thursday, December 18, 2014

Milestone for Tikona as it Breaks even on the EBITDA Front

Tikona Digital Networks (TDS), which has received rave reviews from broadband critics, as well as users alike, was founded in 2008 by some long-standing luminaries of India’s ever-growing Telecom Industry. Spearheaded by CEO Prakash Bajpai, the company which is just under seven years old has received rave reviews from customer’s offers various solutions in the internet services category. In just over five years, Tikona managed to become one of the top three broadband service providers in India with a 2.75 lakh subscriber base in 25 cities spread across the country. With substantial investment from blue-chip Private Equity firms, Tikona has managed to carve out a niche for itself in the fast-growing telecom industry in India. An example of this is the 40,000 outdoor wireless access points across the country making it world's largest outdoor Wi-Fi network provider. In mid-2012, Tikona hit an impressive milestone, breaking even (EBITDA); which is among the fastest in the telecommunications space!

After conclusive planning and substantial research into the missing element in the broadband services space, Tikona rolled out its unique small cell network architecture in 2008. After thorough investment in technology and innovation, including 7000 man hours, the engineers and senior management of the company were satisfied with the new, cutting-edge ultra-low-cost model. An interesting thing to note is that the average monthly download per subscriber on Tikona’s fast growing broadband network in 25 Indian Cities has steadily climbed from 6 GB download per month 2 years ago to 20 GB download per month. This is particularly significant as it’s the most any wireless internet operator has ever seen.

Like every great offering that achieves phenomenal gains on the financial spectrum along with continued customer satisfaction, the key here has been the high-performance wireless last mile solution. This has enabled TDN to deliver Internet service profitably at Rupees 15 to Rupees 25 per Gigabyte at very fast speeds that for example, support two to four simultaneous video streams. Crucially, all of this is achieved at nearly a tenth of the cost of mobile or portable solutions like dongles.

Empowering India

One of the biggest problems India is facing in this age of digital connectivity is the lack of last-mile infrastructure. As a result, broadband penetration is quite poor outside the metros and Tier-I cities. Building up new infrastructure in this regard is very expensive and difficult to build and no significant investment has been made in last 5 years by telecom operators. This is an area of special interest to Tikona as the CEO has said that by leveraging the strengths of 4G OFDM efficiency, large contiguous spectrum, small cell configuration and smart antenna technologies, the company can deliver optimum performance and reliability at a fraction of the cost of setting up new Fiber connections. With such initiatives along with continuous up gradation to its existing portfolio, Tikona looks set to expand the coverage and capacity of its modular network

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