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Hutchison Max applies for ISP licence

Hutchison Max Telecom, the Bombay cellular services company, has applied for an Internet service provider licence.

The operator is also open to acquiring fresh circles under the new telecom policy regime, which are of "strategic" value to its Bombay operations.

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Hutchison Max CEO Sandip Das has been quoted as saying that company has recorded strong gains in the past six months and the new tariffs would further boost growth.

"We are not very far from breaking even," said Das, reflecting a strong growth in an otherwise lacklustre industry, where projections have been thrown out of gear.

"Convergence is throwing up several opportunities for telecom players like us. We have always been at the forefront of introducing new technology.

The Internet operations will be aimed at facilitating convergence and not to get into the industry as another ISP player.

"We want to be prepared to cash in on any opportunity which comes our way," said Das.

He added that a sister concern of Hutchison Whampoa has already tested a videophone, which should be launched in the UK a year from now.

"While one cannot say when this would come to India it is obviously not going to be long before we too see an explosion of convergence here," he said.

On acquisition and entry into other circles, Das said, "We will not acquire just for the sake of acquiring. We are looking at strategic investments that could go along without investments in the Bombay circle, where itself there is still a vast amount of potential that needs to be tapped."

"The Hutchison group has been operative in several countries and has proved that it is good at running operations outside Hong Kong. It has its ears close to the ground and realises well that the Indian telecom industry is on its way up," said Das.

On the new tariff cuts, he said, "The last six months have seen a sound growth for us and with the new tariff rates in place we expect to do even better. We are already offering rates less than Rs 4 in some of our tariff plans and with the rentals now being raised, we would, like all other operators, get a breather by not having to pay the Rs 500 monthly rental fee on behalf of a subscriber."

"The TRAI order sets the tone for an attractive way forward. Once the calling party pay regime is brought into the country, hopefully from August this year, the user will not have to bear the cost of receiving calls. It would also lead to an increase in the air time usage by about 30-40 per cent which fits in well with our marketing strategy," said Das.

"The problem in bringing down the cost of a mobile phone is the high rates of duty which makes an instrument virtually 75 per cent higher than the cost by the time it lands in the country," said Das.

"As far as the tariffs are concerned, our customers on various schemes of ours are in any case paying much lower than the Rs 6 flat rate announced by TRAI. As for those who are still on the standard tariffs, the new rates would be Rs 6 through the day and Rs 5.80 during off-peak hours," said Das.

- Compiled from the Indian media

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