Ascel Plans New Features For Phone Subscribers

Subhash Chandra-promoted ASC Enterprises Ltd (Ascel), which is implementing the Agrani mobile satellite telephony project, will offer some unique first-time features to its phone subscribers.

The move is aimed at providing better services at low costs.

Since Ascel claims to be offering unique features to its subscribers, the cost of the project has gone up from the original $755 million.

The project is heading for a financial closure. However, the reports of the technical and financial review committees, set up by financial institutions, are awaited, and the flow of funds from shareholders and investors depends on them. The review committees have taken into consideration the revised costs.

 

A top FI source told Business Standard that though the project cost had gone up from $ 755 million, the subscribers would not be made to bear the additional burden, and they would be charged as proposed earlier. Ascel proposes to charge about Rs 22 per minute from its subscribers, while the handset will cost about Rs 17,000.

The unique features ---which Ascel claims are being offered for the first time to mobile satphone subscribers--- include optimal call routing, calling party identification, voice mail service, pre-paid card, data transfer and GPS.

The optimal call routing facility, for example, is aimed at reducing any extra cost that a subscriber may incur when the signals are being transmitted over ground network. With the help of this facility, the satellite will trace the Agrani subscriber to the nearest gateway, which will reduce the subscriber's cost when the call is travelling on the ground network.

The source said the GPS facility could be very helpful, for instance, in the transport sector. The facility can help pinpoint the exact location of the Agrani subscriber.

Ascel proposes to provide other services as well through the company-owned satellite, which Lockheed Martin, an equity partner in the project, is building for them. They include:

i) Mobile satellite communication service (MSS), that is voice telephony

ii) Cater to the requirements of urban PCO/resellers

iii) Facilities for Indians residing in UAE to make home calls

iv) Telecom services in the long distance express trains

v) Sale of bulk airtime to corporates for STD/ISD calls

vi) Broadcasting services (leasing transponders to Zee TV and others).

Other shareholders who have given in-principle nod for funds include the Ruias-promoted Essar group, Videsh Sanchar Nigam Ltd and US aerospace major Lockheed Martin, besides Subhash Chandra and associates (the Essel group).

In the mobile telephony project, the Essel group will have 23 per cent equity stake. According to the initial project cost of $ 755 million, Lockheed Martin was slated to invest Rs 215 crore for a 13 per cent stake. The US company will also be building the satellite for the project.

VSNL was to pick up 13 per cent equity, amounting to Rs 215 crore. A memorandum of understanding was signed between Ascel and VSNL, but last year, the latter said it would only bring forward its contributions after others had done so.

Further, Ascel has said it proposes to raise Rs 535 crore through a public issue which will be made close to the date of completion of the project, in order to attract a premium. Originally, equity for the project was to be worth Rs 1,650 crore, vendor facilitated loans/external commercial borrowings Rs 430 crore, and the total rupee term loan Rs 1,220 crore.