It seems broadband services are finally gearing up for a massive roll-out as new entrants are betting heavy capex on such services. The Tikona Digital Networks group that recently sold 70% stake to various PE players like Goldman Sachs Investment Partners, Indivision India Partners and Oak India Investments for Rs.500 crores is considering massive pan-India expansion plans for its wireless broadband services. The company is planning to expand its service network which is presently available in 10 cities to 50 cities by the end of 2010.
Tikona is being promoted by Ex-RCom executives and is also planning to raise upto Rs. 1200 Crores by 2011. It might be interesting to note that Tikona has not paid any significant license fees as it rolled out its services on ISP license unlike other players who are awaiting Wi-max and 3G licenses for a long time. Tikona claims that it’s wireless broadband service uses the Multiple-Input and Multiple-Output (MIMO) platform using free spectrum.
Indian broadband service players continue to attract massive Private Equity interest as Citigroup Venture Capital International acquired Iqara Telecom (renamed as You Tele), a few years ago. Regional players in broadband services are also defying telecom biggies in terms of innovation, service & price parity. Wireless services at the same time have a very potent market in India due to massive laptop-to-computer sales witnessed in past few years.
