HFC, Intel cable network deal through

By Our Staff Correspondent

MUMBAI, JULY 4. Hinduja Finance Corporation's (HFC) plans for providing broadband value added services on its cable networks has come to fruition with the completion of its arrangement with Intel for investment into Indusind Media & Communications Ltd. (IMC) last week.

Earlier, the Foreign Investment Promotion Board (FIPB) approval was sought for Intel Pacific Inc. to acquire an effective holding of 3.3 per cent in IMC through the acquisition of 49 per cent in Grant Investrade, a subsidiary of HFC. The FIPB had, last month, cleared the application for Intel's entry into IMC. The technological inputs from Intel will help IMC's ongoing upgradation plans and for converting its cable network into broadband full services network using both fibre optic and its existing coaxial cables. The upgraded networks will provide a robust, low cost e-commerce platform for B2B as well as B2C transactions. HFC's plans include both access as well as content.

IMC has already commenced transmission of the first of its proposed range of value added services in Mumbai and Bangalore and will soon commence the same in Delhi. In2Cable, the Internet arm of HFC, will use the optic fibre backbone of IMC's broadband network, to achieve Internet access speeds ranging from 100 to 500 kbps measured as sustained throughputs on a 10 MB leased line.

The user is always logged on and therefore the usage is unlimited to 24 hours throughout the year with no telephone charges involved.

The Hindujas will now have additional technological inputs from Intel for their broadband foray with the deal allowing Intel to increase its stake up to 20 per cent.

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Section  : Business
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