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This is an archive article published on June 12, 2006

Enter the Dragon

India8217;s ultimate IT tycoon, Narayan Murthy, is now eager to extend the 8216;silicon touch8217; of Infosys Technologies further afield. Infosys already has offices the world over, including a center in Shanghai where the headcount will increase to 1,000 by the end of this year.

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India8217;s ultimate IT tycoon, Narayan Murthy, is now eager to extend the 8216;silicon touch8217; of Infosys Technologies further afield. Infosys already has offices the world over, including a center in Shanghai where the headcount will increase to 1,000 by the end of this year.

The expansion of the company into China is strategically important because the proximity of China to Korea and Japan makes it easier for the IT giant to explore new markets and avenues in these countries.

Murthy has also found support on home ground with IT minister Dayanidhi Maran8217;s commitment to look into the IT industry8217;s demand for extension of the software technology park STP scheme.

The tide seems to have turned in his favor with even the Karnataka CM, H D Kumaraswamy, extending the olive branch to Murthy by publicly commending Infosys. This is praise indeed coming as it does in the wake of his father Deve Gowda8217;s violent criticism of Murthy and his subsequent resignation as Bangalore International Airport Ltd chairman.

Mobilizing in the UK

Rajiv Mahrotra Shyam sold his equity in GSM mobile service company to Bharti. But today he sits firm with a brand new license for his Shyam Telecom8217;s GSM-based cellular mobile service, only this time it8217;s in Britain. Though the license is initially for 10 years, it is extendable at the discretion of OFCOM, the licensing authority in the UK. Other companies, which have won the license are BT, Colt Mobile Telecommunications and Spring Mobil AB, among others.

The licenses are for 6.6 MHz of spectrum, and are to be operated on a low-power basis. Multiple licenses were given to capitalize on the substitute uses of the band. The tycoon will offer GSM mobile services at tariffs similar to fixed line tariffs giving the tycoon an edge over his competition. But the big question of course is, what his investment horizon is going to be this time, in this crowded market.

If he plays his cards right and manages to build up a healthy marketshare then it8217;s more than likely that one of the big local boys will make him an offer he cannot refuse. In any case, Indian mobile players, who are new collectively in the big global league, need to look at the market where they can leverage their local learnings to grab global profits.

dilipcheriangmail.com

 

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