The two companies have had an in-principle agreement on the sidelines of the Mobile World Congress, Videocon said.
The company is planning to roll out 4G LTE services by mid 2013 when rival network operator Reliance is also slated to launch its 4G services.
Videocon is a bit late to the 4G space as its larger rival Airtel has already launched its 4 G service in April. After rolling out 4G service in Kolkata, Airtel had extended it to other two cities including Bangalore and Pune.
Airtel had also partnered with Chinese Telecom Manufacturer Huawei to launch the first 4th Generation LTE phone in the country.
Meanwhile, Reliance Industries is also rolling out its 4G services in Mumbai and Delhi. The company is rolling out MiFi devices which will allow devices access to high speed fourth generation Internet access from mid of 2013.
The Back Story
According to the latest data from the Cellular Operators Association of India (COAI), Videocon was one of the three telecom operators which lost most number of GSM subscribers in the month of January. Videocon along with Telenor and Tata Teleservices had lost their licenses after the supreme court cancelled 122 operators licenses when it decided on the spectrum scam.
While Airtel and Idea added the most number of customers (2.29 mn and 2.45 mn respectively), Videocon lost nearly 1.38 mn subscribers in January. Videocon has a .34 % market share as compared to 28.01 % of Airtel, 22.46% market share of Vodafone and 17.70% of Idea.
In November, Videocon won a new bid worth Rs 2,22 crore for spectrum licenses in six circles including Uttar Pradesh, Madhya Pradesh, Gujarat and Haryana.
Read our review of Airtel 4G: AVOID it, unless you want to experience early adopter curse