Arun 795 Report post Posted August 30, 2007 Times News Network 28 Aug, 2007 Real estate major Parsvnath Developers has decided to foray into mobile telecommunications market. The company has applied to offer mobile-phone and Internet services across the country, it said in a statement to Bombay Stock Exchange on Monday. The company’s stock price went up by 3.1% to Rs 288 on Monday. The company said, with government following an open policy on spectrum, it seeks to use the opportunity for providing unified access service on a pan-India basis, including rural telephone. The company has expressed the intention to apply for licences in 22 out of 23 telecom circles in the country. It has identified two partners: one domestic investor and other a renowned global telecom giant. Though the company has not yet declared any funding structure, it is likely to hold a minority stake of 26% in the proposed joint venture. CMD Pradip Jain said the company would form a joint venture with foreign partner as per the government norms. At present, foreign investment up to 74% is allowed in telecom sector. He said the group is talking with a number of foreign players for the purpose. India, the world’s fastest growing wireless services market, added a record 8.06 million mobile telephone subscribers in July as carriers such as Bharti Airtel and Reliance Communications expanded networks, mainly in rural areas. Jain said that this is a great opportunity for the company to diversify into a new business area, which is continuously growing. Despite increasing number of subscribers, the penetration of mobile telephony in India is still low as compared to developed countries. Jain said as and when number portability is introduced, it would offer immense business opportunity to new entrants. On several counts, Parsvnath’s move is curious. Even if the government releases spectrum, players like Idea Cellular, Vodafone Essar, Spice Communications and Aircel and others are waiting for it. Considering that the spectrum will be given on a first-come first-serve basis, Parsvnath with its JV partners stands last in the queue. Further, its claim to utilise MNP as a revenue driver may be a tall one. It appears to be a tough choice for subscribers to switch from an existing service provider to a totally new operator. Also, the domestic mobile space has become fiercely competitive with Bharti, Reliance Communications and Idea Cellular, which enjoy a pan-India presence. Finding a foothold in such a crowded place will be a daunting task for a new incumbent. Share this post Link to post Share on other sites
copperco2 24 Report post Posted August 30, 2007 As per the new policy decision here TRAI is to remove cap on the number of players in any particular region.. this move by parsvanath may herald a new boomonce again in th mobile telephony and a surge in the VAS category to be provided for free or at cost. Share this post Link to post Share on other sites
Honest 836 Report post Posted August 30, 2007 ^^^ After all this will be in benefits of the subscribers the most. More competition between the operators will lead to lower rates for customers. Regards. Share this post Link to post Share on other sites
