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Optic fibre:These ducts have now run
dry |
Don't
be fooled by the coloured ducts you see going into the ground in
your city-the Indian optic fibre industry is in the doldrums. OFC
major Sterlite Optical reported a loss of Rs 14 crore for the March-June
quarter and competitor Aksh lost Rs 2.22 crore. ''Telecom is in
a tailspin the world over and the demand from the US market has
dropped,'' rues Tarun Jain, Director (Finance), Sterlite Group.
Thus, the company that exported 70 per cent of its produce in 2000-01
has to live with 40 per cent idle capacity and prices that have
plummeted from $80-100 a km (Rs 3,920-4,900) to $20 (Rs 980). The
Indian market for OFC may be growing at a healthy 30 per cent but
most local TELCOs prefer to import their requirements from companies
such as Corning, LG, or Sumitomo. And with even "basic telephony
companies switching over to CDMA (Code Division Multiple Access,
a wireless technology), there is a move away from OFC,'' explains
B.R. Rakhecha, Executive Director, Aksh Optic Fibre. Clearly, the
stage is set for a shakeout in the industry.
-Moinak Mitra
ENCOUNTER
''It's Not A Level Playing Field''
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Mohan Gyani: Great expectations |
For once, that's coming not from the Bombay
Club, but a foreign telecommunications giant, AT&T Wireless.
In India recently for the launch of AT&T Wireless' launch of
an offshore development centre, the $13.6-billion company's President
and CEO, Mohan Gyani, who's also a director on the
board of Idea Cellular, spoke to BT's Suveen
K. Sinha on the Indian telecom market. Excerpts:
What is the status of Idea Cellular's launch
in Delhi?
I had hoped that they would have launched by
the time I came here. But we are still waiting for the government
to allocate spectrum. It is confusing and frustrating.
With three operators already entrenched
and a limited mobility provider (Tata Teleservices) to commence
operations around the same time as Idea, how difficult will things
be for the service in Delhi?
There are some advantages. We can learn the
key value propositions of the incumbents and work out whether the
space we look at should be the same as the incumbents', different,
or one that the incumbents tried to capture but failed. However,
everything we do must meet expectations.
What are your expectations regarding customer
churn?
The customer churn will be high. I expect 40-50
per cent of Delhi customers to change carriers over the course of
the next one year.
And what about telecom regulations in general?
More than the competition, the concern is over
regulation in general. India is perhaps the only market in the world
that hasn't grown to expectation. One reason for that is the lack
of a supporting regulatory environment. There is no reason why the
Indian market shouldn't have exploded like it did in China. As carriers,
we plan on things happening. I have to justify why the next dollar
should come to India. There are issues of interconnect, CPP... it's
not a level playing field.
What about the proposed merger with BPL
Mobile?
We don't have to do anything. We don't have
our backs to the wall. M&A is like a baby being born. The baby
decides the timing. However, I can tell you that a lot has changed
in the telecom world in the past one year. You have to take a hard
look (at the merger).
GASTRONEWS
Burritos, Senor?
A Mexican food chain gets set
to debut in, of all places, Kolkata.
Tired
of dosas and big macs? no problem. next month, if you are in Kolkata
for the pujas, you may get to sink your teeth into burritos and
tortillas, and chase them down with some authentic Mexican tequila.
Courtesy Mandira Kanoi, a Kolkata-based entrepreneur who is bringing
Castillo, a $38-million Mexican food chain, to India. Operating
through franchisees, the chain, christened Kanoi Castillo Corporation
for India, plans to open full service outlets (Casa Castillo), complete
with margarita bars and a range of Mexican food.
According to Kanoi, the Mexican food chain
will operate restaurants (10, across five metros) and a variety
of ''customer points'' like theatres and airports. The investment
per restaurant? Rs 50 lakh, excluding real estate. Says Kanoi: "It's
time India got a taste of real Mexican food.'' We hope it's hot
enough.
-Debojyoti Chatterjee
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