Indian spectrum blues keep Etisalat at bay

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Indian spectrum blues keep Etisalat at bay

The Saudi Arabian telecom company opens offshore facility in Bangalore, plans an R&D center

CMN Bureau

Tuesday, March 25, 2008

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BANGALORE, INDIA: The non-availability of spectrum is preventing Saudi Arabia's second largest GSM operator Etihad Etisalat Co. from entering the growing Indian telecom market, the company said here today.

"We are interested in entering India and Are closely monitoring this market. One of the major hurdles for a foreign company to enter the Indian telecom market is the non-availability of spectrum. We are looking at opportunities," Khalid Alkaf, CEO and managing director of Mobily, told media persons.

Mobily, which formally opened its technology development center today in Bangalore, is the telecommunication arm of Etihad Etisalat.

According to a Telecom Regulatory Authority of India report, the Indian telecom market is set to become the second largest one in the world after China in April with the subscriber base already crossing the 250-million mark.

China and the US have 550.50 million and 260.50 million mobile phone subscribers respectively. India has 250.93 subscribers, the report said.

New facility

The Bangalore-based offshore subsidiary Mobily InfoTech India Pvt. Ltd is the company's first subsidiary outside Saudi Arabia. It has been functioning here for a few weeks.

The company has invested over Rs 20 crore in the first year of registration and operations, and is expected to invest Rs 70 crore more in the next three years.

"The telecom market in Saudi Arabia is over $10 billion. Saudi is a strong economy and with a GDP growth of five per cent. We have tough competition back home. We have paid $3.2 billion for the license and are the major GSM operator. The reason of setting up the offshore center in Bangalore is that we wanted to be close to the technology hub," said Alkaf.

Mobily InfoTech India is also in the process of establishing an R&D center to cater to the software development and Mobily's consulting services requirements.

"Cost benefit is a default factor in setting up the offshore center. What we need is competitive and knowledgeable people who are close to technology and Bangalore is the best offshore destination," he added.

The Bangalore offshore center will provide product and services on telecommunications to the parent company.

Mobily InfoTech has employed over 70 professionals and is planning to increase the headcount to 200 by 2008 year-end.

(cmn@cybermedia.co.in)

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