HFCL to offer broadband access

NEW DELHI: Himachal Futuristic Communications Ltd. (HFCL), the Delhi-based

communications major that bought the basic service licence from Essar Commvision

for the Punjab circle recently, is expected to start services by the beginning

of September. Group chairman Mahendra Nahata said, "We shall start our

services soon, probably by the beginning of September." Initially, the

service will be available in Chandigarh and later extended to Ludhiana. By the

end of March, the service will encompass the entire state.

HFCL, which has bagged an A category licence to provide Internet services,

will offer both voice and data services. Eventually, it will offer video on

demand and multimedia services through its network. HFCL has placed an order of

$50 million for Lucent switches and access equipment to be deployed over a

five-year period. The project uses the CDMA technology. Interestingly, Nahata

has been a strong advocate of indigenous technology and HFCL in fact has an

alliance with IIT Chennai to manufacture and promote equipment based on an

indigenous wireless technology called CorDect.

According to Nahata, his company will provide telephone services in all parts

of the state irrespective of viability. With rural telephony being a priority

area, HFCL will not make any distinction between the rural and urban areas and

provide connectivity on demand, says Nahata. So far, the company has invested Rs

200 crore in the project and has a target of five lakh subscribers within three

years.

HFCL is also a major manufacturer of transmission and access equipment and

fiber-optic cable. Recently, the company was in the news for its acquisition of

Hyderabad-based Arihant Optics. The acquisition is expected to provide the fiber

for its cable-manufacturing unit, which was earlier being imported. The

manufacturing business will also benefit by the Group’s foray into services,

which will mean that all its cable requirements would be sourced from here.

The licence for the Punjab circle was initially bagged by Essar Commvision in

which HFCL acquired a 41 per cent stake. Under the company’s changed equity

structure, financial institutions hold a 39 per cent stake and the Essar Group

and Bell Atlantic hold 10 per cent each. Recently, Australian media tycoon Kerry

Packer picked up a 10 per cent stake in HFCL for an approximate Rs 1,039 crore.

The funds were used to pay off HFCL’s debts of Rs 350 crore and to complete

the acquisition of Essar Commvision.

HFCL to launch online education



HFCL is drawing up major plans to launch its online education program called
Platinum Edu. The initiative will be headed by Dr MM Pant, the ex-chief of the

Computer Division of IGNOU.

Details like target audience and the content have not been firmed up yet as

the company was "still exploring", according to sources. With the

Internet becoming a pervasive medium, most education majors have been eyeing

this space. Both Aptech and NIIT had announced their online education

initiatives earlier this year. However, the most aggressive has been Zee

Education which has an integrated approach towards its education initiative

where its programs are backed by its television programs and offline centers

connected through VSATs. However, while the first two education majors are

focusing on IT education, Zee also offers offbeat courses targeting niche

segments.