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Tikona Achieves EBITDA Break Even in 4.5 yrs, among the Fastest in the Telecom Space
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Date: 14-11-2014 11:21AM
Source: Tikona Digital Networks (TDN)
Category: Business/ Finance, Advertising, PR & marketing, Business Services, Information Technology, Technology, Telecommunications, General, Consumer interest
Location: Mumbai, Maharashtra, India

Average monthly download per subscriber on Tikona’s broadband network has steadily climbed from 6 GB download per month 2 years ago to 20 GB download per month; the heaviest any wireless operator has seen anywhere. “20 GB is average across all… there are customers who log over 150GB download per month as well. Our built network is already carrying 6 PetaBytes of traffic every month yet it is presently filled to 20% of its built capacity and as the network fills up with additional retail and enterprise subscribers, margins and cash-flows shall multiply. Tikona model is the first one of a kind to match the capacity and performance hitherto achieved via wire-line DSL or FTTC networks only” says Prakash Bajpai, founder and CEO of Tikona Digital Networks.

Tikona embarked upon the journey to roll-out its unique small cell network architecture 5 years ago and has now perfected the ultra low cost model after 7000 man-days of technology enhancement and innovation. Over 250,000 Homes and SMB enjoy the service in select pockets of top 25 cities and the company has achieved Ebitda break-even in about 4.5 years of commercial operations.

This high capacity and high performance wireless last mile solution enables tikona to deliver Internet service profitably at Rs 15 to Rs 25 per Gigabyte, and that too at speeds that support two to four simultaneous video streams i.e. nearly 1/10th the price of mobile solutions like dongles.

India suffers from lack of last-mile infrastructure and therefore has been struggling with poor broadband penetration. New fiber based last mile plants are very expensive and difficult to build and no significant investment has been made in last 5 years by telecom operators. Can Tikona type networks be the answer? When asked, a beaming Prakash Bajpai replied “Yes, a cleverly architected network leveraging the strengths of 4G OFDM efficiency, large contiguous spectrum, small cell configuration and smart antenna technologies can deliver the wire-line like performance and capacity at a fractional cost. Low capex and low opex combination makes this approach ideal for large scale proliferation of broadband to Indian masses. With a small doze incremental growth capital Tikona will be well poised to expand the coverage and capacity of its modular network several fold in next couple of years. We could then be carrying over 30 Peta-Byte of Internet traffic per month”.

About Tikona Digital Networks (TDN):

TDN was founded in 2008 by veterans from the telecom industry, who have built some of the largest telecom networks in India. With a vision to be a leading Broadband and IT services company, offering innovative products and solutions to home, enterprise and service provider customers in India. TDN has 40,000 outdoor wireless access points across the country making it world’s largest outdoor Wi-Fi network provider. The company has recently launched Tikona Infinet (formerly known as HCL Infinet) to provide data services to Enterprises. TDN is adequately funded by top end global investors and is committed to comply with the highest standards of corporate governance.


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