IOL Netcom to offer CDMA services in Mumbai and Delhi
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IOL Netcom, who had so far become synonymous with broadband and IPTV services in Mumbai and Delhi with its tie-up with MTNL is now all set to enter as a player into the Indian telecom market. The company has entered into an agreement with state-owned telecom service provider MTNL, which has presence in the Mumbai and Delhi circles.
MTNL currently offers both CDMA and GSM services in Mumbai and Delhi under the brand Dolphin and Garuda. This franchise model agreement between the two companies is based on the Tata Teleservices-Virgin Mobile deal which is currently in service. RSP Sinha, the CMD of MTNL, told Business Standard:
We have GSM as well as CDMA services. However, while our GSM services attract about 1 lakh customers every month, the CDMA growth was a little slow, for which we decided to enter into this model.
We had developed the franchise model even before the Tata-Virgin deal came through. Our project got a little delayed, though.
Depending on the response that we get from this venture, we will be able to decide whether we should open more codes for IOL Netcom if required.
MTNL had invited bids for CDMA operations in Mumbai and Delhi and IOL Netcom emerged as the winner in both the circles. According to the agreement, IOL Netcom, which plans to operate its brand under the name ‘IOL Mobile’, can have upto 2 lakh customers in each circle. The company hopes to launch the brand and its services within the next 90 days and is supposedly targeting a user base of 1 million in the coming months. While the Average Revenue Per User (ARPU) for any operator is Rs. 230 / month in India, IOL Mobile is aiming for the Rs. 450/month mark.
IOL Netcom also plans to introduce a variety of Value Added Services (VAS) such as multi-play services, comprising mobile, data card, desktop CDMA phones and already offer IPTV and broadband services.
It now joins the seven other companies that have just received licenses from the government to provide mobile services throughout the country. The Department of Telecom (DoT) has also given a go-ahead for MVNOs to operate in the mobile sector and global companies have already started to come calling. The Indian Mobile industry holds huge potential for various companies in the business. We just need to wait and see how the year 2009 (Hopefully, the year of 3G) fares for the consumers.
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