India Business Insight articles from May 2008

India Business Insight archives from May 2008

KEY DEVELOPMENTS IN TELECOM SECTOR: FINANCE , RCOM ACQUIRES EWAVES OF UK (through its wholly owned subsidiary Reliance Globalcom).
May 31, 2008... Reliance Communications (RCOM) has acquired eWaves of the UK through its wholly owned subsidiary Reliance Globalcom. eWaves is a 4G service provider. RCOM plans to launch 4G services worldwide. It also intends to invest $500 million...

KEY DEVELOPMENTS IN TELECOM SECTOR: MISCELLANEOUS , HARYANA GOVERNMENT INVOKES BANK GUARANTEE OF RCOM (for not providing it with bandwidth for its SWAN programme).
May 31, 2008... The Government of Haryana has invoked the Rs15 million bank guarantee of Reliance Communications (RCOM) for not providing it with bandwidth for the statewide area network (SWAN) programme. RCOM had entered into an agreement with the state...

KEY DEVELOPMENTS IN TELECOM SECTOR: MISCELLANEOUS , BSNL IMPLEMENTS INTEGRITY PACT PROGRAMME (for contracts worth more than Rs500 million).
May 31, 2008... Bharat Sanchar Nigam Ltd (BSNL) will sign the Integrity Pact with its bidders for contracts of more than Rs500 million, to ensure transparency, equity and competitiveness in its tenders. BSNL plans to extend the programme to all its...

JET AIRWAYS ANNOUNCES ITS NEW FLIGHTS FROM MUMBAI TO SAN FRANCISCO VIA SHANGHAI (with effect from 5 May 2008).
May 31, 2008... Jet Airways will become the first Indian carrier to operate non- stop daily services from Mumbai to Shanghai and onward to San Francisco, on 5 May 2008. The new flight will reduce the flying time between India and the US West Coast. Jet...

LCCs HEAD TOWARDS GRABBING MAJOR SHARE OF SKY (market share grows to 48% in Jan-Mar 2008).
May 31, 2008... The market share of low cost carriers (LCCs) grew to 48 percent during Jan-Mar 2008, according to latest figures released by the Directorate General of Civil Aviation (DGCA). While the market share of full service airlines declined from 55.5...

SPICEJET BECOMES THE FIRST AIRLINE TO LAND AT NIGHT IN VISAKAPATANAM AIRPORT (also begins daily services from Visakhapatnam to Delhi, Mumbai and Hyderabad).
May 31, 2008... SpiceJet has become the first airline to utilise the night landing facilities at Visakhapatnam airport. On 30 Mar 2008, Flight SG-402 from Hyderabad was the first flight to land in Visakhapatnam using the night landing facility. The...

JET AIRWAYS ENHANCES REGIONAL CONNECTIVITY WITH NEW ATR AIRCRAFT (introduces additional services between Ahmedabad, Indore, Bhopal, Raipur and Hyderabad).
May 31, 2008... Jet Airways has increased regional connectivity by introducing additional services between Ahmedabad, Indore, Bhopal, Raipur and Hyderabad with its new, state-of-the-art ATR 72-500 aircraft consisting of economy class only. The airline has...

IGNOU TO START AERONAUTICAL ENGINEERING COURSE (to meet the needs of the aviation sector).
May 31, 2008... The Indira Gandhi National Open University (IGNOU) plans to start a four-year B Tech course in Aeronautical Engineering in collaboration with Aeronautical Engineering and Research Organisation (AERO) of Pune. The course will begin in July...

AIR INDIA PHASES OUT WIDE-BODIED AIRBUS A300s (on 31 Mar 2008).
May 31, 2008... Air India terminated the use of its A300 aircrafts on 31 Mar 2008. Air India had inducted these aircrafts into its fleet in 1976. The aircraft, which was introduced in the domestic sector with executive class for the first time, also...

JET AIRWAYS LINKS MUMBAI AND HONG KONG WITH DAILY FLIGHTS (with effect from 14 Apr 2008).
May 31, 2008... Jet Airways has commenced its daily, direct service between Mumbai and Hong Kong from 14 Apr 2008. Jet Airways will introduce the Airbus 330-200 aircraft with two classes ? Premiere and Economy, in the Mumbai-Hong Kong-Mumbai sector. With the...

DELTA AIR LINES TO FLY STATE-OF-THE-ART BOEING 777-200LR AIRCRAFT (on its daily non-stop Mumbai-New York JFK service).
May 31, 2008... Delta Air Lines has introduced the Boeing 777-200LR Longer Range jet aircraft on its daily non-stop John F Kennedy (JFK) International Airport, New York and Mumbai service. The state-of- the-art aircraft offers fully horizontal personal...

INDIAN CARRIERS SHOW 11 PERCENT GROWTH (in Jan-Mar 2008).
May 31, 2008... The number of passengers in the domestic sector grew from one crore in Jan-Mar 2007 to 1.12 crore during Jan-Mar 2008, recording a year-on-year growth of 11.12 percent, despite a slump in the economy and increasing fuel prices. Air India had...

DGCA GIVES CLEARANCE TO CHINESE CARGO AIRLINE (Great Wall Airlines to fly to Delhi, Mumbai and Chennai).
May 31, 2008... The Directorate General of Civil Aviation (DGCA) has permitted Chinese Cargo airline Great Wall Airlines to fly to Delhi, Mumbai and Chennai, pending security clearances. China and India held talks to clear outstanding issues after which...

NACIL TO WIPEOUT LOSSES THROUGH AIRCRAFT SALE (and lease-back agreement).
May 31, 2008... The National Aviation Company of India Ltd (NACIL) posted a loss of Rs700 crore for 2006-2007. An aircraft sale and leaseback agreement is expected to lower its expected loss of more than Rs1,000 crore for 2007-2008. The company's domestic...

GOVERNMENT CONTEMPLATING AIRCRAFT PRODUCTION WITH AIRBUS (for manufacture of 70-seater ATRs and small turboprops).
May 31, 2008... The Government of India is considering an entry into the aircraft production sector with Airbus, a division of European Aeronautic Defence and Space Company (EADS). The government plans to start with 70-seater ATRs.

GOYAL?s AMBITIOUS PLAN TO EXPAND HIS AIRLINE EMPIRE (by buying smaller domestic carriers and focusing on cargo segment).
May 31, 2008... Jet Airways? expansion plan includes buying smaller domestic carriers to increase its market share from the present 29 percent, according to Naresh Goyal, chairman of the airline. The company is also focusing on its cargo business by...

IGIA TO GET HI-TECH WEATHER SYSTEM SOON (called Integrated Automatic Aviation Met System).
May 31, 2008... The Indira Gandhi International Airport intends to install the hi- tech weather system called the Integrated Automatic Aviation Met System (IAAMS), which processes, disseminates and displays real- time meteorological parameters. The...

SIX COMPANIES SHORTLISTED FOR REVAMPING OF AIRPORTS (at Chennai and Kolkata with an investment of Rs3,800 crore).
May 31, 2008... The Airports Authority of India (AAI) has short-listed six companies including ITD (Hong Kong), Ssangyong (Malaysia), M/s TAV Tepe Akfen (Turkey) and Larsen & Toubro Ltd for executing the Rs3,800 crore modernisation projects at Chennai and...

KINGFISHER LAUNCHES NEW FLIGHTS (from Chandigarh to Delhi and Mumbai).
May 31, 2008... Kingfisher Airlines has announced the launch of its daily flights, Chandigarh-Delhi and Chandigarh-Mumbai. It also commenced daily services in the Delhi-Goa and Delhi-Hyderabad sectors.

GOPINATH IN TALKS WITH CIAL FOR ALL-INDIA CARGO HUB (on a hub-and-spoke model).
May 31, 2008... Cochin International Airport Limited (CIAL) and G R Gopinath are considering entering into a joint venture to establish cargo hubs across the country. The cargo facilities will be set up on a hub- and-spoke model, with the hub located at...

JETLITE TO OPERATE FLIGHTS BETWEEN AMRITSAR AND BANGKOK (becomes first domestic budget airline to offer this service).
May 31, 2008... JetLite will commence its service between Amritsar and Bangkok to become the first domestic budget airline to operate on this route. Owing to increasing tourist traffic, an air service agreement was signed between India and Thailand to...

SOUTHERN STATES ATTRACT AIRLINES FOR NEW FLIGHTS (owing to capacity constraints at Delhi and Mumbai).
May 31, 2008... Capacity constraints at Delhi and Mumbai and better infrastructure facilities in the two new airports at Hyderabad and Bangalore have encouraged airlines to launch new services in south India. In addition to the proposed seven flights from...

HIGH-TECH CENTRE PLANNED AT IGIA FOR BETTER SERVICES (to reduce delays, improve coordination and increase efficiency).
May 31, 2008... Delhi International Airport (P) Ltd proposes to establish an Airport Operations Control Centre (AOCC) at the Indira Gandhi International Airport (IGIA). AOCC will have state-of-the-art software enabling it to get real-time data from Air...

JET AIRWAYS ALLOWED TO FLY TO CHINA (making India the only foreign country to carry passengers from China to a third country).
May 31, 2008... China has granted operations permit to Jet Airways that gives it the fifth freedom right to operate a flight on the Mumbai- Shanghai-San Francisco sector. This makes India the only foreign country to carry passengers from China to a third...

'WARMING UP' INSTANT HEATERS (Merloni TermoSanitari India Ltd launches Racold's Primo, an electric water heater).
May 31, 2008... Merloni TermoSanitari India Ltd (MTSIL) launched Racold's Primo, an electric water heater with many features. The new model is sleek and hence saves on space and will allow both horizontal and vertical plumbing. The durable appliance will...

GRAND HYATT HYDERABAD TO STRENGTHEN HYATT'S PRESENCE IN INDIA (the 400-room Grand Hyatt Hyderabad will be a part of the 100- acre township called Lanco Hills).
May 31, 2008... Affiliates of Global Hyatt Corporation and Lanco Hills Technology Park Private Ltd (LHTPP) signed a management agreement to launch the 400-room Grand Hyatt Hyderabad. The hotel will be a part of the 100-acre township called Lanco Hills, a...

KEY DEVELOPMENTS IN TELECOM SECTOR: POLICY ? FIVE TELECOM COMPANIES ALLOCATED START-UP SPECTRUM (in Tamil Nadu and Orissa circles).
May 31, 2008... Five telecom companies, Datacom, Idea Cellular, Unitech, Swan Telecom and Loop Telecom have been allocated start-up spectrum in Tamil Nadu and Orissa circles. While 4.4 megahertz of spectrum has been allotted in Tamil Nadu, code division...

KEY DEVELOPMENTS IN TELECOM SECTOR: POLICY ? DEADLINE FOR LAUNCHING MNP EXTENDED (from Dec 2008 to Jun 2009).
May 31, 2008... The deadline for launching mobile number portability (MNP) across the four metros has been extended from Dec 2008 to Jun 2009, as the networks of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have to be upgraded....

KEY DEVELOPMENTS IN TELECOM SECTOR: POLICY ? DoT ASKS TTSL NOT TO LAUNCH BLACKBERRY SERVICES (unless monitoring system is installed).
May 31, 2008... The Department of Telecommunications (DoT), Government of India, has asked Tata Teleservices Limited (TTSL) not to launch BlackBerry services unless the necessary monitoring system is installed. The DoT and the Ministry of Home Affairs,...

KEY DEVELOPMENTS IN TELECOM SECTOR: REGULATION ? RCOM AND TTSL DIRECTED TO PAY ACCESS DEFICIT CHARGES TO BSNL (by the Supreme Court of India).
May 31, 2008... The Supreme Court of India has directed Reliance Communications (RCOM) and Tata Teleservices Ltd (TTSL) to pay access deficit charges (ADC) to Bharat Sanchar Nigam Ltd (BSNL) ruling that the Unlimited Cordless and Walky services offered by...

KEY DEVELOPMENTS IN TELECOM SECTOR: MOBILE SERVICES ? BSNL ASKS UNITS TO RECOVER DUES THROUGH PRIVATE RECOVERY AGENTS (as on 31 Jan 2008, the dues were Rs54.88 billion).
May 31, 2008... Bharat Sanchar Nigam Ltd (BSNL) has instructed its state units to appoint private recovery agents on a commission basis to help in the recovery of dues from subscribers and private operators. As on 31 Jan 2008, the dues were Rs54.88...

KEY DEVELOPMENTS IN TELECOM SECTOR: MOBILE SERVICES ? SHYAM- SISTEMA TO APPLY FOR GSM SPECTRUM (under the dual technology clause).
May 31, 2008... Shyam-Sistema, a joint venture between Shyam Telelinks and Sistema of Russia, will apply for the global system for mobile (GSM) spectrum under the dual technology clause. The company intends to launch code division multiple access (CDMA)...

KEY DEVELOPMENTS IN TELECOM SECTOR: MOBILE SERVICES ? BHARTI AIRTEL TO EXPAND ITS NETWORK IN WEST BENGAL (with an investment of about Rs6 billion in 2008-2009).
May 31, 2008... Bharti Airtel proposes invest Rs6 billion in 2008-2009 to expand its network in West Bengal. It plans to establish 2,000 cell sites, expanding its existing network of 4,000 cell sites. In 2008-2009, the company also plans to increase the...

KEY DEVELOPMENTS IN TELECOM SECTOR: INTERNET AND BROADBAND SERVICES ? FLAG TELECOM WINS APPEAL FILED BY TATA COMMUNICATIONS (at the district court of The Hague, Netherlands).
May 31, 2008... FLAG Telecom has won the appeal filed by Tata Communications, formerly Videsh Sanchar Nigam Ltd (VSNL), at the district court of The Hague, Netherlands. VSNL had filed the appeal on the issue of access to the Mumbai cable landing station. The...

KEY DEVELOPMENTS IN TELECOM SECTOR: INTERNET AND BROADBAND SERVICES ? TATA COMMUNICATIONS ENTERS INTO PARTNERSHIP AGREEMENT WITH TE DATA SAE (to extend its virtual private network services to Egypt).
May 31, 2008... Tata Communications has entered into a partnership agreement with TE Data SAE, a subsidiary of Telecom Egypt, to extend its virtual private network services to Egypt. The European and Indian network hubs of Tata Communications will be...

KEY DEVELOPMENTS IN TELECOM SECTOR: LONG DISTANCE SERVICES ? PASSPORT GLOBAL SIM SERVICE LAUNCHED IN 115 COUNTRIES (by Reliance Globalcom).
May 31, 2008... Reliance Globalcom has launched the Passport Global SIM service in 115 countries. The service offers unlimited free incoming calls in 57 countries under prepaid and post-paid schemes.

KEY DEVELOPMENTS IN TELECOM SECTOR: LONG DISTANCE SERVICES ? FRANCE TELECOM TO LAUNCH NLD AND ILD SERVICES (in India).
May 31, 2008... France Telecom will launch National Long Distance (NLD) and International Long Distance (ILD) services in India through Orange Business Services, its wholly owned subsidiary. France Telecom has received approval from the Department of...

KEY DEVELOPMENTS IN TELECOM SECTOR: FINANCE , QTIL TO EXPAND BUSINESS (with an investment of Rs3 billion).
May 31, 2008... Quippo Telecom Infrastructure Ltd (QTIL) proposes to increase the number of its telecom towers from 4,500 to 10,000 by Mar 2009 with an investment of Rs3 billion. QTIL is negotiating with Tata Teleservices Ltd (TTSL) to buy stake in TTSL?s...

KEY DEVELOPMENTS IN TELECOM SECTOR: FINANCE , SHYAM-SISTEMA IN NEGOTIATIONS WITH RTIL (for Rs50 billion deal).
May 31, 2008... Shyam-Sistema joint venture is negotiating with Reliance Telecom Infrastructure Ltd (RTIL) for a Rs50-billion agreement, which will allow Shyam-Sistema to offer mobile services using RTIL's infrastructure for 10 years. The agreement will...

KEY DEVELOPMENTS IN TELECOM SECTOR: MISCELLANEOUS , RCOM TO OFFER HANDSETS OF ALL BRANDS (at its Reliance World and RCOM outlets).
May 31, 2008... Reliance Communications (RCOM) plans to offer global system for mobile (GSM) handsets of all brands, including LG, Samsung, Motorola, Sony Ericsson, Spice, Fly Mobile and HTC Corporation, at its Reliance World and RCOM outlets. Initially, the...

RACE FOR MTN: CAN BHARTI PULL IT OFF? (Bharti Airtel negotiates for controlling stake in MTN).
May 31, 2008... Bharti Airtel, valued at $37 billion, is in discussions with MTN Group of South Africa for a controlling stake in MTN. Bharti Airtel has offered to pick up 51 percent stake in MTN for $19 billion. MTN, however, is in favour of a full...

TOUGH STAND: DOT TIGHTENS M&A NORMS (to ensure competition among operators).
May 31, 2008... The Department of Telecommunications (DoT), Government of India, has made more stringent the norms for mergers and acquisitions (M&A) among telecom companies to ensure that there are more than eight operators in every circle leading to...

PERFORMANCE TRENDS: TRAI RELEASES QUARTERLY SERVICE INDICATOR REPORT , WIRELINE SERVICES (wireline subscriber base declines).
May 31, 2008... The number of wireline subscribers recorded a decline from 39.58 million in Sep 2007 to 39.25 million in Dec 2007, with the rural wireline subscriber base declining from 11.99 million to 11.75 million. In terms of market share, Bharat...

PERFORMANCE TRENDS: TRAI RELEASES QUARTERLY SERVICE INDICATOR REPORT ? WIRELESS SERVICES (wireless subscriber base registers increase).
May 31, 2008... The number of wireless subscribers increased from 209.07 million in Sep 2007 to 233.62 million in Dec 2007, with the rural wireless subscriber base rising from 43.98 million to 52.52 million. While the global system for mobile (GSM) segment...

PERFORMANCE TRENDS: TRAI RELEASES QUARTERLY SERVICE INDICATOR REPORT , ARPUs AND MOUs (ARPU declines in GSM segment).
May 31, 2008... The all-India blended average revenue per user (ARPU) per month registered a decline in the global system for mobile (GSM) segment from Rs275 in Sep 2007 to Rs261 in Dec 2007. The minutes of usage (MoU) per subscriber per month rose from 462...

PERFORMANCE TRENDS: TRAI RELEASES QUARTERLY SERVICE INDICATOR REPORT , INTERNET AND BROADBAND SERVICES (number of wireline internet subscribers registers increase).
May 31, 2008... While the number of wireline internet subscribers increased from 9.63 million in Sep 2007 to 10.36 million in Dec 2007, the number of broadband subscribers increased from 2.67 million to 3.13 million. The wireless internet subscriber base...

PERFORMANCE TRENDS: TRAI RELEASES QUARTERLY SERVICE INDICATOR REPORT , PMRTS AND VSAT SERVICES (subscriber base increases in both segments).
May 31, 2008... The number of public mobile radio trunk services (PMRTS) increased from 33,663 in Sep 2007 to 34,825 in Dec 2007. In the very small aperture terminal (VSAT) segment, the number of subscribers increased from 65,352 to 67,409, registering a...

PERFORMANCE TRENDS: TRAI RELEASES QUARTERLY SERVICE INDICATOR REPORT , FINANCIAL PERFORMANCE (total revenue records increase).
May 31, 2008... The total revenue of the telecom services sector in India increased from Rs31.28 billion in Sep 2007 to Rs33.05 billion in Dec 2007 with the private sector accounting for 67 percent. While the growth in revenue of the private sector was 8.26...

XCEL TELECOM: TARGETS RAPID GROWTH (has set a target of 25,000 towers by 2010).
May 31, 2008... Q Investments launched XCEL Telecom in Oct 2006. XL Telecom provides passive infrastructure and 24X7 operations and maintenance services to clients that include Vodafone, Aircel, Bharat Sanchar Nigam Ltd, Spice Communications and Himachal...

STERLITE INDUSTRIES: LEADING PLAYER IN OPTIC FIBRE BUSINESS (in 2007, the company accounted for 46% of the optic fibre market and 37% of the optic fibre cable market).
May 31, 2008... Sterlite Technologies of Pune, established in 1988, manufactures optic fibre, optic fibre cables and copper cables for long haul, metro access and premises networks. Its clients include Bharat Sanchar Nigam Ltd, (BSNL) Mahanagar Telephone...

TELECOM COMPANIES SHOW HEALTHY FINANCIAL GROWTH IN 2007-2008 , BHARTI AIRTEL (total revenue increased from Rs185.2 billion in 2006-2007 to Rs270.25 billion in 2007-2008).
May 31, 2008... Bharti Airtel recorded a year-on-year increase in minutes of usage (MoU) from 478 to 507 in 2007-2008. The company's profit increased from Rs13.53 billion in Jan-Mar 2007 to Rs18.53 billion in Jan-Mar 2008. While total revenue increased...

TELECOM COMPANIES SHOW HEALTHY FINANCIAL GROWTH IN 2007-2008 , RCOM (profit increased from Rs31.63 billion in 2006-2007 to Rs54.01 billion in 2007-2008).
May 31, 2008... Reliance Communications (RCOM) recorded a growth in net profit from Rs10.24 billion in Jan-Mar 2007 to Rs15.03 billion in Jan- Mar 2008, while revenue increased from Rs39.37 billion to Rs53.11 billion. The average revenue per user (ARPU)...

TELECOM COMPANIES SHOW HEALTHY FINANCIAL GROWTH IN 2007-2008 , IDEA CELLULAR (profit increased from Rs5.02 billion in 2006-2007 to Rs10.42 billion in 2007-2008).
May 31, 2008... Idea Cellular's net profit during Jan-Mar 2008 was Rs2.76 billion recording a year-on-year growth of 43.8 percent. Its revenue increased by 51 percent to Rs19.72 billion, average revenue per user (ARPU) from Rs279 to Rs287 and minutes of...

TELECOM COMPANIES SHOW HEALTHY FINANCIAL GROWTH IN 2007-2008 , MTNL (profit increased from Rs4.66 billion in 2006-2007 to Rs5.07 billion in 2007-2008).
May 31, 2008... Mahanagar Telephone Nigam Ltd (MTNL) recorded an increase in profit from Rs2.06 billion in Jan-Mar 2007 to Rs2.19 billion in Jan-Mar 2008. The revenue increased from Rs13.9 billion to Rs14.63 billion. The profit increased from Rs4.66...

TELECOM COMPANIES SHOW HEALTHY FINANCIAL GROWTH IN 2007-2008 , SPICE COMMUNICATIONS (total revenue increased from Rs2.23 billion in Jan-Mar 2007 to Rs3.09 billion in Jan-Mar 2008).
May 31, 2008... Spice Communications posted a net loss of Rs365.06 million in Jan- Mar 2008. The net loss in Jan-Mar 2007 was Rs146.67 million. However, total revenue increased from Rs2.23 billion to Rs3.09 billion.

TELECOM COMPANIES SHOW HEALTHY FINANCIAL GROWTH IN 2007-2008 ? GTL/GIL (net profit increased by 308.96% from Rs670 million in 2006- 2007 to Rs2.74 billion in 2007-2008).
May 31, 2008... GTL Infrastructure Ltd (GIL) registered an increase in operating profit from Rs62.6 million in Jan-Mar 2007 to Rs225.7 million in Jan-Mar 2008. Its revenue was at Rs421.9 million registering an increase of 162.5 percent. Its annual revenue...

FINANCIAL BRIEFS , SPECTRUM FEES YIELD REVENUE OF Rs30.15 BILLION IN 2007-2008 (registers an increase of 44.25 percent).
May 31, 2008... The income from spectrum fees has registered an increase of 44.25 percent from Rs20.9 billion in 2006-2007 to Rs30.15 billion in 2007-2008. The telecom sector now has 134 private operators who offer services to a subscriber base of 208.4...

FINANCIAL BRIEFS , TTSL PLANS STAKE SALE WHILE TTML DECIDES TO HIVE OFF ITS TOWER DIVISION (TTSL to raise over $1 billion to fund the expansion of its CDMA and GSM services).
May 31, 2008... Tata Teleservices Ltd (TTSL) intends to sell 15-30 percent stake to private investors to raise over $1 billion to finance the expansion of its code division multiple access (CDMA) services and its global system for mobile (GSM) services. ...

NETWORK18 TO GET INTO CINEMAS, ROLLOUT THEATRE CHAIN (through a separate company called Starglaze).
May 31, 2008... Network18 is planning to open a chain of theatres in India. The group has formed a separate company 'Starglaze' for the venture. Capital18, the financial division of the company, will fund this project. The company will focus on...

GOVERNMENT GIVES IN PRINCIPLE APPROVAL FOR CAS ROLLOUT (in the entire Delhi, Kolkata, Mumbai and other 55 cities in India).
May 31, 2008... The Government of India has approved the launch of conditional access system (CAS) for the entire Delhi, Kolkata, Mumbai and other 55 cities in India. The launch in Delhi, Kolkata and Mumbai will be in Nov 2008. While the CAS rollout for 55...

PAYWORLD IS INDIA'S SECOND LARGEST e-PIN DISTRIBUTOR (plans to have 50,000 operational terminals covering 23 telecom circles by 2010).
May 31, 2008... PayWorld of Sugal & Damani group offers online services for prepaid recharges, bill collection and reservation. The company is planning to have 50,000 operational terminals covering 23 telecom circles by 2010 to capitalise on the growth in...

NDTV MAY LAUNCH FOUR NEW LIFESTYLE CHANNELS (by 2010 on travel, food and wellness).
May 31, 2008... NDTV intends to launch four lifestyle channels by 2010. It is proposing to introduce channels on travel, food and wellness. The investment in each channel will be between $8 million and $15 million depending on the content and package.

NDS SCOUTS FOR LOCAL PARTNER TO MANUFACTURE STBs (and also to develop other interactive solutions).
May 31, 2008... NDS of the UK, provider of digital pay television technology solutions, is in search of domestic partners to set up a manufacturing unit for set-top boxes (STBs). This is to meet the expected demand for STBs when once Reliance Communications...

AOL SELLS CALL CENTRE TO ESSAR (Aegis to offer customer service and technical support to the customers of AOL from Bangalore).
May 31, 2008... Aegis BPO Services of Essar group has signed an agreement with AOL to acquire AOL's call centre operations in Bangalore. AOL, a part of Time Warner Inc of US, has its call centre at Whitefield in Bangalore with around 1,000 people. With this...

LIONBRIDGE TO HIRE FREELANCERS (the company plans to increase its staff strength to 2,500 by the end of 2008 with more freelancers).
May 31, 2008... Lionbridge Technologies Ltd is planning to recruit more freelancers for editing and testing jobs. The company engaged in content, software and application development, has around 1,600 employees in its Mumbai and Chennai offices with 20...

SPANCO KICKS OFF BPO OPERATIONS IN SINGAPORE: PLANS EXPANSION IN CHINA & MALAYSIA (to invest Rs100 crore for its centres in China and Malaysia).
May 31, 2008... Spanco Telesystems and Solutions will commence its business process outsourcing (BPO) and back office operations in Singapore soon. It is establishing a facility with 100 seats for serving its existing customers in inbound calls. It also...

DENUOSOURCE SETS UP SECOND KPO CENTRE (in Hyderabad with 75 associates).
May 31, 2008... DenuoSource of the US has announced the setting up of its second knowledge process outsourcing (KPO) centre in Hyderabad. The centre will initially have 75 associates and will be increased to 150 by the end of 2008. Its other centre is...

BONUS BLUES STIR UP LABOUR UNREST AT WNS NASHIK UNIT (a section of the employees stayed away from work for two days demanding additional bonus for 2006-2007).
May 31, 2008... WNS Global Services, a business process outsourcing company, experienced labour unrest for the first time at its Nashik unit for bonus. A section of the employees stayed away from work for two days demanding additional bonus over and above...

DOCTORS & NURSES IN BPOs (to prepare risk reports for insurance companies in the US by studying the profile of elderly patients).
May 31, 2008... Business process outsourcing (BPO) companies in India are recruiting doctors and nurses for the preparation of risk reports for insurance companies in the US by studying the profile of elderly patients. Wipro BPO, Tata Consultancy Services,...

CHRYSLER DRIVES INTO INDIA WITH BPO (facility in RMZ Millenia information technology park in South Chennai).
May 31, 2008... Chrysler is setting up its information technology enabled services facility in RMZ Millenia information technology park in South Chennai. The first facility of Chrysler in India will have an area of 80,000 square feet. It will work both for...

TALENT CRUNCH FORCES BPOs TO TIER-II CITIES (Everest group identifies 25 small cities in India as potential for BPO business).
May 31, 2008... Indian business process outsourcing (BPO) companies are moving into tier II cities in view of increasing real estate prices and talent crunch in metros. According to the study of Everest group, a consultancy firm, the shifting of BPO...

ANZ NATIONAL TO MOVE 500 PROCESSING JOBS TO BANGALORE (to shift 100 jobs involving processing and operational functions to Bangalore centre in 2008).
May 31, 2008... ANZ National Bank of New Zealand plans to shift 500 jobs to Bangalore from New Zealand by 2009. It is shifting 100 jobs to Bangalore in 2008. The job involves processing and operational functions. The bank has a technology centre in...

AND NOW, BPOs ARE OUTSOURCING THEIR HR OPERATIONS (BPO companies hire RPO companies for immediate replacement of employees).
May 31, 2008... Business process outsourcing (BPO) companies are now hiring recruitment process outsourcing (RPO) companies for their requirement and replacement of staff. This is to address the high rate of attrition of 40 percent in the industry. According...

METRO BPOs LOOK TO RURAL AREAS FOR BACK OFFICE OPERATIONS (due to high rate of attrition and high wages in the metros).
May 31, 2008... Business Process Outsourcing (BPO) companies in the metros in India are looking at rural areas for their back office operations. This is attributed to high rate of attrition in the metros and also high wages. BPO firms like GramIT, promoted...

WIPRO LOGS ON TO LPO SERVICES (to focus on patent and contract management services).
May 31, 2008... Wipro Technologies Ltd has commenced offering legal process outsourcing (LPO) services as a part of its knowledge process outsourcing (KPO) business. It will focus on offering services such as patents and contract management. It employs...

DELL EXPANDS TAMIL NADU FACILITY TO PRODUCE MORE PRODUCTS (Dell's Sriperumbudur unit to produce 1.2 million laptops per year).
May 31, 2008... Dell, a manufacturer of computers, will produce laptops from its facility in Sriperumbudur, near Chennai. The company intends to expand this facility to manufacture around 1.2 million units in 2009. The unit is now producing 4 lakh units per...

CAMBRIDGE SOLUTIONS TO SET UP UNIT IN CHENNAI (including a training centre at a cost of $7.5 lakh as a part of its expansion).
May 31, 2008... Cambridge Solutions Ltd, information technology services and knowledge process outsourcing company, will be setting up a development centre in Chennai. This facility, including a training centre involving an investment of $7.5 lakh, will...

SATYAM TO SET UP OFFSHORE CENTRE AT GANDHINAGAR (in Gujarat by 2010 at a cost of Rs60 crore).
May 31, 2008... Satyam Computer Services intends to set up its offshore development centre at Gandhnagar, Gujarat. The centre will come up by 2010 at a cost of Rs60 crore. It will provide employment to over 3,000 professionals by 2013.

GOVERNMENT EXTENDS TAX CONCESSIONS ON STPI BY A YEAR (to March 2010 which was to expire in Mar 2009).
May 31, 2008... The Government of India has extended the tax concessions under software technology parks of India (STPI) scheme to March 2010. The tax benefits under Section 10A of the Income-tax Act were to expire in Mar 2009 as per the sunset clause...

EDUCOMP SOLUTIONS TO VENTURE INTO RURAL AREAS (to increase its presence to 6,000 Government schools and I,000 private schools for its e-education programme).
May 31, 2008... Educomp Solutions Ltd, an education technology company, is planning to enter into rural areas by increasing its presence to 6,000 Government schools. It also plans to enter 1,000 private schools. The company has undertaken projects on the...

LAIRD TECH BEGINS PRODUCTION FROM SRIPERUMBUDUR (the company has set up its manufacturing unit at the Nokia SEZ near Chennai at a cost of $15 million).
May 31, 2008... Laird Technologies of US has announced the commencement of production at its Sriperumbudur facility, near Chennai. The company's first offshore manufacturing unit in India is located at the Nokia special economic zone (SEZ). The cost of...

DoT ALLOWS OPERATORS TO SHARE ACTIVE INFRASTRUCTURE (like antenna, feeder cable, Node B, radio access network and transmission systems except spectrum).
May 31, 2008... The Department of Telecommunications (DoT) has permitted the sharing of active infrastructure by the telecom service providers under mutual agreements. The sharing is limited to antenna, feeder cable, Node B, radio access network and...

GOVERNMENT TIGHTENS TELECOM MERGER NORMS BUT ACQUISITION HAS BEEN MADE EASY (merger of existing operators is considered only after three years of operations from the date of issue of licence).
May 31, 2008... The Department of Telecommunications (DoT), Government of India, has come out with new guidelines for merger and acquisition (M&A) of telecom companies. The new guidelines have made merger difficult and acquisition easy. Under the new...

REGULATORY WATCH - REITERATES 3G SPECTRUM FOR EXISTING OPERATORS THROUGH AUCTION (Trai for allocation of 3G spectrum to the existing UAS/CMTS licensees only through auction).
May 31, 2008... Telecom Regulatory Authority of India (Trai) has recommended to the Department of Telecommunications (DoT), Government of India, to allocate 3G spectrum to the existing UAS/CMTS licensees only through auction. It has also recommended 2x5MHz...