Transcript: Weekly Tech News Round-Up from India

This transcript is from a PodTech.net podcast at:
http://www.podtech.net/home/technology/1534/weekly-tech-news-round-up-from-india-3

Host: Kamla Bhatt - PodTech

Kamla Bhatt - PodTech
This is Kamla Bhatt for PodTech, with the weekly Tech Round-Up on India for November 16th 2006. We continue, this week's Round-Up with our usual coverage of VC funding, Merger and Acquisition, Telecom and Mobile Sector, Microsoft's Steve Ballmer's visit to India and video and Bollywood initiative and Yahoo's, new appointments.

We start with a look at Venture Capital funding for this past week. Tejas Networks, a Bangalore based Optical Networking company raised $20 million in Equity Financing. This funding ground was lead by Sandstone Capital, an India-focused fund based in Boston, Massachusetts. Existing investors, Dr. Gururaj Desh Deshpande, Battery Ventures, and Intel Capital also participated in the round, along with a new co-investor, Sun Technologies. This new round of investment will be used by Tejas Networks to expand its international business and R&D work. It is just not IT and Services Company that, are receiving funding in India. Hospitality and travel sector has received, a good chunk of VC funding this past year. Last week, Carzonrent raised $7million in funding from Sequoia Capital India.

Carzonrent is in the long term arrangement with Hertz rental. Sandeep Singhal of Sequoia Capital India will join the board of Carzone. US based Starwood Capital, a real estate investment fund, announced its plans to invest in India. Mr. Barry Sternlicht, Chairman and CEO of Starwood Capital, who's currently visiting India, said that, Starwood Capital plans to invest about $300 million in the next 18 month, writes the Economic Times. Starwood Capital is also planning to launch its luxury hotel brand along with its eco-friendly hotel brand one in India. The location of these hotels, have not been announced so far. Earlier this year in July, Starwood Capital appointed Mr. Balaji Rao to head, its India operation.

We now move on to Merger and Acquisition. Tata Consultancy Services, a Global IT and Services Company announced that it has acquired total communication solution, a privately owned company in Australia for an upfront cash payment of for $1.7 million (Australian). Tata Consultancy Services will also pay the Australian company a performance payment of $15 million (Australian) spread over a five year period. In a related news item, Tata Consultancy Services recently won an IT Services contract from Qantas, the Australian Airlines Company. TCS and Qantas signed a seven year engagement valued at about $120 million (Australian). This is reportedly the largest single contract deal awarded to an Indian IT company in Australia. TCS will provide a range of IT applications, transformation and maintenance service to Qantas.

We now move on to the Telecom Sector. There's a new international player, in the Indian Telecom Sector. British Telecom or BT plans to offer domestic and long distance services in India shortly. BT's competition will be Videsh Sanchar Nigam, India's largest long distance company and Reliance Communications. The International Herald Tribune reports, BT plans to offer the services through BT Telecom India, a joint venture BT has set up with Jubilant Enpro of New Delhi. BT has a 74% stake and the joint venture with about $1.6 million. Jubilant Enpro is part of Jubilant Corporation that is, focused on oil and gas, aerospace, automobile, power and infrastructure and financial services.

We now move to the Mobile Phone Sector in India. The number of mobile subscribers, in India has seen the phenomenal growth. Since, January 2006, millions of new subscribers for both, CDMA and GSM phones have been added by various mobile operators in India. The Business Standard writes, after clocking a world record by adding over 6 million subscribers in September, surpassing China, India is expected to have added another 7 million in October. The paper continues that the number of GSM subscribers has increased from 4 million in September to 4.7 million subscribers in October. The number of mobile phone subscribers in India has seen a phenomenal growth. Since January 2006, millions of new subscribers for both CDMA and GSM phones have been added, by various mobile operators. The Business Standard writes that, after clocking a world record by adding over 6 million new subscribers in September Surpassing China, India is expected to have added another 7 million in October.

The paper continues that, the number of GSM subscribers has increased from 4 million new subscribers in September to 4.7 million subscribers in October. Microsoft's Steve Ballmer was in India last week. Microsoft has teamed up with, Hutchison, a wireless company to office search, Mail and messaging services to its 21 million customers, reports Reuters. Hutchison is the fourth largest mobile operator in India. Amidst is tightly packed schedule, Mr. Ballmer found time to be a guest editor at the Economic Times Newspaper for a day. According to Forbes magazine Mr. Ballmer found time to tap into India's two passions "Cricket and Bollywood". He met with director Yash Chopra and cricketer Anil Kumble, both of whose companies use Microsoft products. Bharti Airtel, India's largest mobile operator has signed, a deal with Microsoft Corporation to provide software services, to the 6.5 million small and medium businesses in India.

Bharti Airtel will offer services ranging from hosted messaging and collaboration to hosted applications like, CRM, Accounting and ERP among others. Bollywood was in the agenda of another technology company, besides Mr. Steve Ballmer of Microsoft. NVIDIA based in Silicon Valley recently announced, the launch of a digital Bollywood initiative to tap into Bollywood, the Hindi film industry located in Mumbai, India. NVIDIA Corporation and several partners announce the strategic initiative, for the Indian Digital Content Creation Community. The initiative called, "Digital Bollywood", couples NVIDIA's Technology with industry experts, from around the world to help enable, India as a digital content creation power house. We now look at new appointments made at Yahoo!. Last week Yahoo! announced the appointment of Pranesh Anthapur and Pete Deemer to the Yahoo! India, Research and Development Center in, Bangalore.

Yahoo! announced the appointment of Mr. Pranesh Anthapur, as their new COO for their Yahoo! India, Research and Development Center in, Bangalore. Prior to moving to Bangalore, Mr. Anthapur was VP for Yahoo's International HR and HR Mergers and Acquisition group in Sunnyvale, California. Yahoo! also announced the appointment, of Pete Deemer as the Chief Product Officer of Yahoo! India, Research and Development. Mr. Deemer is also moving from Yahoo's Headquarters in Sunnyvale. He joined Yahoo! in 2003, where he was vice president Product Development, overseeing Yahoo's Product Development Practices, product quality and integration efforts under the Chief Product Officer. And, we end this weeks roundup with, a footnote that, you might have missed; Bangalore, the IT capital of India, has had a name change. The new name for the city is now Bengaluru.

That's all for this week, tune back in next week for another Tech News Round-Up on India. This is Kamala Bhatt for PodTech, and as always thank you for tuning in.