The Hindu : Business : Idea, Hutch offer high speed internet services

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Thursday, Jul 29, 2004

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Business

Idea, Hutch offer high speed internet services

By Our Staff Reporter

— Photo: Kamal Narang

The Chief Executive Officer, Idea Cellular, Vikram Mehmi, at a press conference in New Delhi on Wednesday.

NEW DELHI, JULY 28. Two leading cellular operators — Idea and Hutch — today launched Enhanced Data for GSM Evolution (EDGE) services, offering higher Internet connection speed, quick downloads and other multimedia services on mobiles.

While Idea has launched this next generation service only for Delhi and NCR subscribers (both prepaid and post-paid), Hutch has announced an all-India rollout.

Stating that initially EDGE services will be available at only 25 per cent of their cell sites in Delhi which would soon be extended to 60 per cent sites, the Idea Cellular's CEO, Vikram Mehmi, said for the first time any mobile operator in the country would be providing live TV on mobile.

"We will be introducing this services in all our 11 telecom circles within the next few weeks. As cheaper EDGE-enabled handsets were easily available in the market now, we hope that more subscribers, particularly corporate clients and youth, will use this service,'' he added.

Attractive charges

The charges of Idea for mobile web browsing and video streaming, multimedia messaging and downloads will be in the range of Rs.15 to Rs.50. "Internet on mobile (IOM) will be available to pre-paid and post-paid subscribers for five paise per kb while Rs. 500 per month will be charged for unlimited browsing,'' said Mr. Mehmi, adding that Nokia was the technology provider for Delhi, Andhra Pradesh and Haryana circles while Ericsson and Siemens were providing equipment for other circles to roll out EDGE services.

Meanwhile, in a statement issued here, Harit Nagpal, Chief Marketing Officer, Hutch, stated, "With an EDGE-enabled national network, we will be able to provide the next generation of multimedia mobile services to our users. The EDGE-enabled Hutch network now has the capability to provide services such as video streaming on mobile phones.

"EDGE can deliver higher speeds of download using the existing GSM spectrum and is being deployed by leading GSM operators globally as an interim step towards 3G services.''

UNI reports:

AT&T stake buy out

Singapore Technologies Telemedia Pte (STT) and Telekom Malaysia Bhd have completed due diligence to jointly buy out AT&T's entire 33.3 per cent stake in Idea Cellular.

"The due diligence has been completed by STT and Telekom Malaysia to buy one-third stake in Idea Cellular,'' Mr. Mehmi said.

The companies would buy the stake from AT&T Wireless Services Inc, which is reportedly quitting India as it is being taken over by Cingular Wireless.

Asked if STT and Telekom Malaysia would raise their combined stake in Idea to 49 per cent, Mr. Mehmi refused to comment.

The maximum foreign holding allowed in the telecom sector is 49 per cent and the Budget 2004-05 has proposed to raise it to 74 per cent. After the buyout, if STT and Telekom Malaysia increase the combined stake to 49 per cent, then the shares held by the Tatas and the Birlas would fall to around 25 per cent each from one-third now.

On whether Idea will come out with an Initial Public Offer (IPO) even if the FDI in telecom is increased, the CEO of the Pune-based company refused to comment. On whether Idea will come out with an Initial Public Offer (IPO) even if the FDI in telecom is increased, the CEO of the Pune-based company refused to comment.

Idea will invest Rs. 1,200 crores for network and capacity expansion to achieve 100 per cent growth this fiscal. Idea Cellular, which acquired Escotel Mobile Communications and Escorts Telecommunications last month, has footprint across 11 telecom circles.

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