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UK firm New Call Telecom to invest $100 mn in India

Set to acquire controlling stakes in four companies

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BS Reporter New Delhi
Last Updated : Aug 20 2014 | 1:36 AM IST
Britain-based New Call Telecom (NCT) on Tuesday said it would invest about $100 million in India over the next 18 months in acquiring a controlling stake in four technology companies and to provide them development capital.

NCT is known for affordable telecom products for residential needs in the UK. It will invest in fixed-line broadband, public Wi-Fi and messaging. It is expected to announce the names of the four companies over the next few weeks. The company declined to disclose the names of the firms it was acquiring as the regulatory clearances and some negotiations are still in process.

As the company was investing in mid-sized companies in broadband value-added space, most of the investment would be spent as development funds, said chairman Jerome Booth. With the acquisitions, the company will have a pan-India presence.

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Booth, also the founder of New Sparta, said: “India is a big bet and success here would lead to further investment here and other emerging nations. Our short-term vision in India is to capture the massive opportunity that the telecom sector here presents surrounding data transit, usage manipulation, and streaming, collaborating with other incumbent telecom operators and generating new revenue streams.”

“The medium to long-term strategy involves looking at complementary opportunities and building synergies around our different business areas involving data analytics and e-commerce, and, thus, developing a unified communications platform,” said chief executive Nigel Eastwood.

NCT has 750,000 subscribers in the UK residential telecom market, where it offers phone and broadband packages through its Primus Saver brand. Its other brands — Planet Talk, Just Dial and Rate Buster — offer international call services.

Last month, Booth had said NCT would invest in companies unable to monetise. “We’ll take them to the next level, as we understand how to create revenue streams,” he said.

They might, he added, look at possible exits over three to five years after acquiring stakes in the companies.

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First Published: Aug 20 2014 | 12:44 AM IST

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