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Our Bureau

Consolidation moves begin after TRAI proposal on district-level ISPs

New Delhi May 14 The Citigroup-owned Internet service provider, YOU Telecom, announced the acquisition of IceNet, the Ahmedabad-based Internet service provider for an undisclosed amount. The move comes close on the heels of the recommendations of the telecom regulator suggesting that district level ISP category licence should be done away with.

While YOU telecom is a national level ISP with over 1.5 lakh subscribers, IceNet offers services in a few cities in Gujarat. IceNet has about 3,500 Internet subscribers.

YOU Telecom said that the TRAI recommendations have begun the consolidation process in ISP industry. "National ISPs and telecom companies are eyeing regional players who have very good hold in their area of operations and are running profitable operations," said a press release.

Mr Chirag Mehta-promoted IceNet is Gujarat's largest registered ISP in the private sector primarily focussed on corporate sector and voice over Internet protocol solutions.

"I am very happy that IceNet is merging in to a larger entity having a national footprint and larger resource pool. I am confident that IceNet and YOU Telecom together will take this business to new heights "said Mr Mehta CEO & Managing Director of IceNet.

Mr E.V.S. Chakravarthy, CEO, YOU Telecom, said, "We are pleased about this development as it will help us consolidate our reach in Ahmedabad, Baroda and Rajkot. IceNet has got a strong presence in these cities, which merges well with YOU's business strategy. In addition, all IceNet subscribers will now migrate on YOU network, thereby, increasing our subscriber base. Most importantly our last mile service will be enhanced to a greater level."

With YOU Telecom focused on providing next generation broadband applications, the acquisition will further help YOU Telecom's triple play ambitions as IceNet is a strong player in the VoIP space, primarily data and voice. YOU Telecom has operations in 11 cities across the country.

More Stories on : Mergers & Acquisitions | ISPs

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