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YOU Telecom investing Rs 100 cr in Net telephony

V. Rishi Kumar

Hyderabad, Aug. 19 Following Government moves to open up and offer Internet telephony services for domestic users, YOU Telecom India, a category one ISP and broadband service provider, is set to invest about Rs 100 crore to offer triple play services.

The Mumbai-based company plans to invest Rs 50 crore in the phase one and expects the services to actually commence about six months from now. The Chief Executive Officer of YOU Telecom, Mr E.V.S. Chakravarthy, said once the proposals of the Telecom Regulatory Authority of India secure Department of Telecom nod, which most people expect it within a month, it will take six months to offer these services commercially.

The company expects to raise funds through private equity route.

More players to join

Most of the operators globally are already using Internet protocol (IP) based networks. However, in India, operators have not harnessed its potential as yet. Once issues regarding interconnect etc are sorted out, more telecom players will join the fray, he explained.

“There are host of equipment vendors from China who can offer hardware for these services.

“However, one of the biggest impacts it will have is on the way tariff structure will change. We believe instead of pulse based, it will have unlimited talk time,” he said.

Mr Chakravarthy said that operators are already faced with challenge of improving their average revenue per usage which is coming down due to lowering of tariffs. This has meant more focus on value added services.

YOU Telecom has over 1,155 km of optical fibre network and over 4,000 km of last mile coaxial cable grid. The company operates out of 12 cities and plans to expand this to 9 more cities within 12 months.

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