The Telegraph
Since 1st March, 1999
Email This Page
Debt to fund Data Access expansion

New Delhi, Aug. 26: Data Access, the bandwidth supplier to call centres and internet service providers, will invest Rs 200 crore as part of its expansion plans.

The company plans to raise the resources through a debt issue of Rs 100 crore and the balance from internal resources. The investment is likely to be completed in the next financial year.

As part of its expansion, Data Access will set up five more gateways and pick up more transponder space from satellite and bandwidth from undersea cable companies.

The company is also exploring a proposal for an initial public offer (IPO), but is inclined to raise the resources through debt. While not ruling out the option for an initial public offer to raise resources, Siddharth Ray, managing director of Data Access India Ltd, said, “We have been exploring it (an IPO) but we are a debt-free company and it would be better for the company to go for debt. IPO is an option that we can explore anytime.”

The company today inked a deal with Intelsat to source 100 megabit per second capacity (Mbps) for a three-year period. This will provide connectivity from Data Access network operating centre (NOC) in Delhi to Intelsat's teleport in Fuchsstadt, Germany via satellite. The data traffic will be routed from Germany on fibre backhaul to Intelsat's London point of presence to connect with Data Access point of presence in London.

This is expected to bring down the cost of bandwidth lease to call centres and internet service providers by 20 per cent. The company's 80 per cent of the total revenue comes from India operations but is bullish about the world market and plans to increase its revenues from global operations by 40 per cent in the next financial year.

“The market potential of switched international private leased circuits (IPLC) business in this sector is getting stronger,” Ray said.

Email This Page