Data Access to enter Pakistan

After its successful entry into the Sri Lanka market, the Rs 600 crore International Long Distance (ILD) service provider, Data Access (India) Ltd is planning to enter into Pakistan.

The company had recently entered into the Sri Lanka as one of the 22 licensees and is likely to commence its services soon.

Surojit Sen, director of Data Access told Business Standard here on Monday: "As per our initial techno-commercial survey, Pakistan market has the growth potential next to India in this region due to the high volume US-bound traffic."

"But we will not enter into Pakistan through the Indian entity. But Data Access's US holdings will operate in Pakistan through a joint-venture with a local company," Sen added.

According to Sen, the Pakistan ILD market is pegged at an estimated 30 million minutes of outbound call traffic and 120 million minutes of inbound traffic per month. The Indian ILD market is pegged at 85 million minutes of outbound call traffic 350-390 million minutes inbound call traffic per month.

"We will enter the Pakistan market with a local company which will not only save time and investment, but will also help us know the country's market better and establish our presence faster. At present we are looking for a suitable partner in Pakistan," said Sen.

The company is also exploring business opportunities in Bangladesh and Mauritius. Data Access may also enter into the ILD market in Saudi Arabia and the African countries as part of the second phase of the company's geographical expansion.

Data Access had reported a turnover of Rs 621 crore as on September 30, 2003 with a profit after tax (PAT) of Rs 22 crore.

The company will also adopt the JV model for entering into the Mauritius and Bangladesh market.

While Data Access India may go for JV with a local company in Mauritius, Data Access will use its US holding to start operations in Bangladesh.

"The Mauritius market is comparatively smaller and traffic is mainly based on the usage by the travelers. Though we have not made any concrete estimate of this particular market, it has a potential for outbound traffic to India and also we expect good business from inbound traffic from European countries," said Sanjay Sethi, group financial controller.

About its operations in Sri Lanka, Sethi said, "We will begin operations once the issues related to interconnectivity are sorted out by the Sri Lankan regulators. We have already installed switch to operate in this country.