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Net 4 Plans ILD Foray
(The Economic Times, 17th November 2005)
INTERNET Service Provider (ISP) Net4, which offers net telephony service for overseas calls, is planning to enter the international long distance (ILD) segment to cash in on its existing customer base.
"We are looking closely at entering the ILD market, mainly because we already have a significant captive customer base for the outbound," Net4 CEO Jasjit Sawhney said.
"We may apply for ILD licence independently or partner with an existing or new player in the segment," he added. He pointed out that there was a significant margin between calls made through circuited switch and via the internet.
While the average rate of an international call is Rs. 11 per minute, it is around Rs 3 per minute if made from Net4India's calling card, available under the 'Phonewala' brand name.
The Delhi-based firm is a strong player in international internet telephony with over 700 VoIP PCs across India. "We are fairly entrenched in that market doing five million minutes of calling every month," he added.
The ILD option will increase the company's existing international Internet telephony business as well as revenue, he said. Net4 is only looking at the ILD segment. "On the national long distance front, the STD rates are already very low and margins are limited. So we, don't have immediate plans of entering NLD,' Mr Sawhney added. |
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