Parsvanath rings a new bell in telecom street
The domestic telecom space will get a little more cramped if the real estate firm Parsvnath Developers’ plans to launch mobile services materialise.
By Johan Mundat and Ranjit Shinde, TNN |
The domestic telecom space will get a little more cramped if the real estate firm Parsvnath Developers’ plans to launch mobile services materialise.
The company has expressed the intention to apply for licences in 22 out of 23 telecom circles in the country. It has identified two partners: one domestic investor and other a renowned global telecom giant. Though the company has not yet declared any funding structure, it is likely to hold a minority stake of 26% in the proposed joint venture.
The management of the Rs 1,260-crore real estate company is betting on three factors. First, release of the frequency spectrum for mobile communication by the government. Secondly, the government is also considering a structure for mobile number portability (MNP). Lastly, the involvement of a global operator will add operational knowhow to the mobile foray of Parsvnath.
On several counts, Parsvnath’s move is curious. Even if the government releases spectrum, players like Idea Cellular, Vodafone Essar, Spice Communications and Aircel and others are waiting for it. Considering that the spectrum will be given on a first-come first-serve basis, Parsvnath with its JV partners stands last in the queue.
Further, its claim to utilise MNP as a revenue driver may be a tall one. It appears to be a tough choice for subscribers to switch from an existing service provider to a totally new operator.
Also, the domestic mobile space has become fiercely competitive with Bharti, Reliance Communications and Idea Cellular, which enjoy a pan-India presence. Finding a foothold in such a crowded place will be a daunting task for a new incumbent.
The company has expressed the intention to apply for licences in 22 out of 23 telecom circles in the country. It has identified two partners: one domestic investor and other a renowned global telecom giant. Though the company has not yet declared any funding structure, it is likely to hold a minority stake of 26% in the proposed joint venture.
The management of the Rs 1,260-crore real estate company is betting on three factors. First, release of the frequency spectrum for mobile communication by the government. Secondly, the government is also considering a structure for mobile number portability (MNP). Lastly, the involvement of a global operator will add operational knowhow to the mobile foray of Parsvnath.
On several counts, Parsvnath’s move is curious. Even if the government releases spectrum, players like Idea Cellular, Vodafone Essar, Spice Communications and Aircel and others are waiting for it. Considering that the spectrum will be given on a first-come first-serve basis, Parsvnath with its JV partners stands last in the queue.
Further, its claim to utilise MNP as a revenue driver may be a tall one. It appears to be a tough choice for subscribers to switch from an existing service provider to a totally new operator.
Also, the domestic mobile space has become fiercely competitive with Bharti, Reliance Communications and Idea Cellular, which enjoy a pan-India presence. Finding a foothold in such a crowded place will be a daunting task for a new incumbent.
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