Wipro and KPN form JV for Internet Services

Wipro Ltd. and KPN (Royal Dutch Telecom), a global telecom operator with a total revenue

of $8 billion, have signed a MoU to form a joint venture company to offer Internet

Services in India.

Internet services will be offered through Wipro Net, a

subsidiary company of Wipro Corporation (with a total revenue of $508 million and a market

capitalization of $5.6 billion). The shareholding pattern in the joint venture will be

55:45, between Wipro and KPN, respectively. The JV will continue to have the name Wipro

Net Ltd.

Commenting on this alliance, Wipro Corporation Chairman

Azim H Premji said, "The formation of this joint venture with KPN will bring in

contemporary IP service knowledge, peering arrangements and Internet experience into Wipro

Net."

The current management structure of Wipro Net will be

augmented with functional experts from KPN. The vision of Wipro Net is to be number one in

the business segment and quality of services, driven by Six Sigma processes, and among the

top three in the residential market. In three years time Wipro Net plans to go for an IPO

(initial Public offer).

Wipro Net currently manages a nation wide fault tolerant

network, through communication hubs in eight major Indian cities and has been a provider

of intranet/extranet services in the country for the last three years.