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Tag: Spice Telecom

  • Spice Telecom plans $150 mn IPO

    Spice Telecom plans $150 mn IPO

    BANGALORE: Karnataka’s first mobile telephony service provider Spice Telecom (Spice) has plans for a public issue totaling $150 million.

    Modicorp (51% stake) along with Telekom Malaysia (49% stake) own Spice. The red herring prospectus will be filed with Sebi and the IPO is likely to open in end March this year with Spice to planning to dilute around 15-20% of their stake.

    Spice has recently been awarded a railway outsourcing contract by IRCTC to provide services to the customers for a payment of Rs 1 billion over 10 years. The scope of work includes providing customers with information services across India, IVR, information and other services. The voice call to IVR ratio is around 20:80 according to Spice officials. The contract commences from March this year.

    Spice is present in 2 circles – Karnataka and Punjab with a customer base of around 2.5million of the total 100 million plus Indian subscribers. India has over 6000 railway stations and almost 80-90% of these are covered by mobile service providers. Spice is in negotiations with other service providers for carriage and other services in the other circles. This contract means that over the next ten years other service providers can provide railway information only through Spice.

    To ramp up and meet the service requirements, Spice plans to set up 4 regional hubs all over the country. This contract has been obtained by an equally shared joint venture between Spice and Spanco Telesystems (Spanco) from Mumbai. Spanco are to be the hardware system integrators for this venture.

    Speaking during a press briefing in Bangalore yesterday, Modicorp chairman BK Modi said, “Railways cover the length and breadth of the country physically, Spice will help connect the country telephonically,” while announcing that Spice planned to have kiosks on every platform in the country, where valid passengers can pick up sub $20/- mobile and with a Rs 50/- chip that can receive incoming calls free.

    “Currently we were lacking in distribution. Now with 6,000 railway stations we can take telephony to the bottom of the pyramid, a mobile is no longer a luxury, it is a necessity, and with 4 billion passengers that travel by train, the aim for reaching a subscriber base of 500 million by 2010 could be met even earlier,” Modi said.

    Spice along with Taiwanese suppliers provide low end as well as high end mobile phone instruments.

    Unconfirmed reports also indicate that Bollywood diva Katrina Kaif has been appointed brand ambassador for Spice. Priyanka Chopra, whose three year contract ends in December 2007, will also continue as brand ambassador, a company source says.
     

  • Spice Telecom in expansion mode, launches Kannada Wap portal

    Spice Telecom in expansion mode, launches Kannada Wap portal

    BANGALORE: Spice Telecom (Spice) has launched its Kannada Wap portal Kannada Kasturi.com. Times Internet (TIL) supplies content to the portal.

    On offer is a collection of polytones, pruetones, singtones, MP3 Tones, videos, animations, wallpapers, videotones and theme downloads in Kannada. Value added services including WAP. IVR, SMS, USSD and MyTunes (CRBT) will also be offered on KK.

    Spice CEO Navin Kaul is optimistic about doubling the existing subscriber base of 500,000 in Karnataka in the next 10 months. Spice is present in two circles – Punjab and Karnataka – with an overall subscriber base of 2 million, states an official release. Kaul also revealed Spice’ Karnataka plan to increase the presence from the current 80 towns and cities to another 150.

    On a national scale, Spice proposes to bid for all the circles. Spice has now moved ahead of Tata Indicom in Karnataka, up from the last place to number five with the addition of around 150,000 subscribers over the last 5 to 6 months, claimed Kaul during a discussion with this reporter on the sidelines of the press conference.

    TIL Mobile Entertainment business head Neeraj Sharma claims that TIL owns rights to over 50000 picture (wall papers) and sound titles from India and around 10000 from across the world, a major portion of which is English. Times of India Director Sanjiv Sethi claims that TIL owns rights to a major portion – almost one third of the almost 2000-3000 titles of Kannada content.

    Plans are afoot to create awareness of KK. Spice Karnataka spends around Rs 180-200 million towards its media campaign. National TV ads have been a recent addition in the Spice campaign. A few moths ago spice roped in Bollywood diva Priyanka Chopra as its brand ambassador. JWT looks after the creative business.

  • Telekom Malaysia completes 49% stake purchase in Spice Telecom

    Telekom Malaysia completes 49% stake purchase in Spice Telecom

    BANGALORE: Telekom Malaysia Berhad (TM) today solemnized the acquisition of the 49 per cent stake in Spice Communications Pvt. Ltd. by the exchange of ‘completion documents’.

    The deputy prime minister of Malaysia, Datuk Seri Najib Tun Razak who is currently heading the trade delegation in India witnessed the exchange of documents. TM was represented by its Group CEO, Dato’ Abdul Wahid Omar while Mcorp Global was represented by Dilip Modi, president, Mcorp Global. This formal exchange marks TM’s entry into the lucrative Indian telecommunications market of India, which is the fastest growing telecommunications market in the world.

    With the competition of this acquisition, TM is now the owner of a 49 per cent equity stake in Spice Telecom. TM secured this critical piece in its regional footprint, through its international investment holding company, TM International SDN BHD. The acquisition was of a total consideration of USD 178.85 million. The remaining 51 per cent equity remains with the existing shareholders Mcorp Global Ltd. and its associates, Mcorp.

    Opined Dilip Modi, “Today, both countries are at the forefront of the revolution in Information, Communication and Entertainment (ICE) technologies and have much to offer each other. Together, they could become a powerful force to take Asian companies to an entirely new globally competitive level. I am confident our strategic partnership with TM will create a new synergy and help us in maximizing growth in one of the world’s fastest growing markets.”

    “Spice customers today join TM’s global mobile subscriber base of over 20 million. Apart from TM’s operational and management experience both in Malaysia and key Asian regional markets, Spice customers stand to benefit from, through the creation and innovation of new products and services, sharing of technological experience and implementation, and the leveraging of group synergies such as in global procurement,” Modi further added.

    Dato Abdul Wahid Omar described organic growth as the key approach for creating shareholder value in Spice, “TM and its partner, Mcorp will seek to grow Spice to be a market leader in the geographies it operates in.”

  • Cellebrum.com partners with three cellcos to offer users customised background music

    Cellebrum.com partners with three cellcos to offer users customised background music

    MUMBAI: Music is one of the few features, which is being pushed aggressively by various mobile operators. Himachal Pradesh based integrated telecom VAS solution provider Cellebrum.com Pvt. Ltd has launched a customised background music (BGM) solution as its latest offering, allowing users to play music in the background during a call.

    Cellebrum.com has tied up with leading operators like IDEA Cellular, Spice Telecom and Reliance Telecom at the national level and is offering BGM to its existing subscribers.

    The VAS solution provider is also running a pilot programme for Airtel for its landline services in the Madhya Pradesh Circle.

    It is upbeat about its BGM, which is played by the operator in the background of a call. The background music is a value addition to mobile peer to peer calling wherein a subscriber is allowed to create his own ambience during a call by playing music in the background.

    This customized solution in which, a call, when answered, is accompanied by music in the background. The caller can choose his music from a variety of sounds provided.

    This solution is different from CRBT solution, where music is played
    before the call is connected. In BGM, music is played after the call is connected. Technically, it is a conference service, which involves the calling party, called party and the music playing entity, which is also, part of the conference. This entity is responsible for playing back music
    during the conversation.

    BGM has the ability to boost the ARPUs of cellular operators due to the low cost at which it is being offered. However, this cost varies from operator to operator. There are three kind of charges — the activation charge, the chosen background song and the per minute cost of the song.
    Today, over 170,000 mobile subscribers across the network of IDEA Cellular and Spice Telecom have tried using the BGM service.

    In order to use the service, the user needs to dial a prefix (say 234) before the phone number, for the call to be connected with the Music M-vironment (BGM). Without the prefix, the call will be connected as a normal phone call. Users can always change background sound at will by dialling provided IVRS (Interactive Voice Response Services) Interface.

    It is important to note that the caller has to be within the coverage area of the home network. It is an IVR based service which will not be accessible outside home network.

  • Telekom Malaysia acquires 49% stake in Spice Telecom

    Telekom Malaysia acquires 49% stake in Spice Telecom

    MUMBAI: Telekom Malaysia Berhad (TM) has secured a critical piece in its regional footprint, with the acquisition a 49 per cent stake in India’s Spice Communications Pvt Ltd (Spice) for a consideration of $178.85 million.

    The acquisition, made through TM’s international investment holding company TM International Sdn Bhd (TMI) involved the purchase of the stake held by Deutsche Bank AG and Ashmore Investment Management Limited consortium (DBA).

    The remaining 51 per cent remains with the existing shareholders, the Mcorp Global Ltd and its associates (Mcorp).

    A statement jointly released in Kuala Lumpur and New Delhi stated that the definitive agreements governing the transaction were executed in Kuala Lumpur today. Completion of the transaction is expected within a month, subject to closing conditions and regulatory approvals. A media conference-cum-briefing explaining the transaction was also held in Kuala Lumpur jointly by senior TM and Mcorp officials.

    Spice is a privately held company incorporated in India providing cellular telecom services in the states of Punjab and Karnataka. The company commenced operations in 1997 after receiving its cellular licences from the Government of India.

    With the company’s recent decision to migrate to the Unified Acess Licensing regime, the scope of services allowable has since broadened to further include full and limited mobility fixed and wireline services, VAS, as well as broadband services.

    Through new applications, the company is also in the process of obtaining licences for 6 new circles (namely Jammu/Kashmir, Haryana, Rajasthan, Himachal Pradesh, Uttar Pradesh West/East), as well as National Long Distance (NLD) and International Long Distance (ILD) licences.

    According to TM chairman Tan Sri Mohd Radzi Mansor, the proposed investment is consistent with TM’s objectives of becoming a significant mobile player in the Asian markets, and to participate in the growth opportunities in the Indian cellular market. TM, which has re-strategised its international investments to focus on regional markets closer to Malaysia, has strong presence in the Asia Pacific region, with investments in Sri Lanka, Bangladesh, Indonesia, Cambodia, Singapore and Pakistan.

    “India is the missing piece in our regional footprint. Now with Spice as part of the TM family, it strengthens our regional presence and complements our existing presence in Sri Lanka where we are the number one, and Bangladesh where we are the number two mobile operator. We are excited about sharing our experience and learn more about the Indian market from Spice,” he said.

    “With Punjab being the most prosperous state in the country and Karnataka dubbed as the “Silicon Valley” of India, there is tremendous potential for mobile telephony in these markets. We are optimistic that Spice will contribute positively to the overall performance of TM in the near future” he added.

    TM Group CEO Dato’ Abdul Wahid Omar described organic growth as the key approach for creating shareholder value in Spice. “Apart from growth through new cellular circles expansion, we are excited about the implementation of other services under the Unified Access licensing regime. TM and its partner Mcorp will seek to grow Spice to be a market leader in the geographies it operates in, including attaining a pan-India presence,” he said.

    “Spice customers today join TM’s global mobile subscriber base of over 20 million. Apart from TM’s operational and management experience both in Malaysia and key Asian regional markets, Spice customers stand to benefit from through the creation and innovation of new products and services, sharing of technological experience and implementation, and the leveraging of group synergies such as in global procurement,” he further added.

    Mcorp Global chairman Dr B K Modi described India and Malaysia as natural allies and which have strong historic cultural ties, and share the same values and aspirations.

    “Today, both countries are at the forefront of the revolution in information, communication and entertainment (ICE) technologies and have much to offer each other. Together, they could become a powerful force to take Asian companies to an entirely new globally competitive level,” he said.

    “We are totally committed to the principles of enhancing human productivity – boosting the prosperity of the entire Asia Pacific region, and promoting global peace for the sake of all humanity. It is now time to redefine our relationship, rewrite our destiny, and reinvent the future. I am confident our strategic partnership with TM will create a new synergy and help us in maximizing growth in one of the world’s fastest growing markets,” Modi added.

    Dr Modi also described Spice as the pioneering brand of mobile telephony in India, committed to becoming the most preferred choice for energetic young minds through synchronised performance in ICE products and services. Spice, he said, has been built on the bedrock of its values: fun, innovation, vibrancy, empathetic, trustworthy and fast to respond. It has a presence in two of the high potential markets of Punjab and Karnataka.

    Lazard India were sole financial advisors to TM and TMI on this transaction.