Broadband services provider IOL Netcom is the latest to enter the telephony arena. IOL Netcom has entered into a franchise agreement with MTNL to provide CDMA mobile services in Delhi and Mumbai. The company will introduce a mobile brand “IOL Mobile” within 90 days. IOL is targeting a user base of 1 million subscribers, and expects a rather high ARPU of over Rs. 450. It remains to be evaluated if the services pass through all the policies and regulations of the land since Videocon’s promoters hold 14.9 percent stake in Netcom. It is key to note that IOL will be offering CDMA based services - MTNL already has CDMA spectrum for offering its Wireless Local Loop (WLL) service - Garuda. Also, IOL Netcom has worked with MTNL before, on IPTV, and they intend to provide Data Card, a Desktop CDMA phone, IPTV, Broadband, VoIP and other services in the two cities. They are going to offer services like mobile, data card, desktop CDMA phone, IPTV and broadband services through this agreement.
MTNL CMD RSP Sinha spoke about entering into this deal with IOL: “We have GSM as well as CDMA services. However, while our GSM services attract about 1 lakh customers every month, the CDMA growth was a little slow, for which we decided to enter into this model. We had developed the franchise model even before the Tata-Virgin deal came through. Our project got a little delayed, though.” IOL Netcom is now aiming to launch their IOL Mobile branded services within three months.
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