Videocon eyeing Motorola`s handset biz: report

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India Infoline News Service / Mumbai Apr 02, 2008 10:54

According to media reports, Videocon group chairman said that we have expressed our interest in acquiring Motorola’s handset business. We learnt from a reliable source that they will be selling it and when they do we are sending an expression of interest.

The Videocon group is planning to bid for Motorola's troubled handset unit, if the US-based company decides to sell the loss-making business. According to media reports, Videocon group Chairman Venugopal Dhoot has been quoted as saying that Videocon is in the initial stages of evaluating a bid.

"We have learnt from a reliable source that they (Motorola) will be selling it and when they do we are sending an expression of interest," he added. According to a financial daily, the group has hired a leading investment banker to convey its interest to buy out the mobile handset business of Motorola.

Motorola, on March 26 said it plans to split into two companies next year amid pressure from billionaire investor Carl Icahn to spin off the handset business that it pioneered 25 years ago. The board is looking for a new CEO for the mobile handset business, Motorola said.

Motorola spokespersons declined to comment on the news.

Motorola's handset business may be worth about US $3.8bn, according to Merrill Lynch. That's more than double the market value of Videocon Industries Ltd., the Videocon group's listed company. Some analysts say Motorola won't sell its mobile handset business to Videocon as it does not have a global brand value.

Having said that there are definite synergies to be had as Videocon group's subsidiary Datacom has received license for launching pan-India mobile operations and is awaiting allotment of spectrum.

The group plans to invest Rs60bn on the mobile services business across all the 23 circles in India. It is looking at a subscriber base of 25mn in the next three years. India adds around 7-8mn new mobile users every month.

So, the potential is quite big given the tele-density of just 25% in the country. At the same time, the challenges too are quite a few. One is the stiff competition among global mobile phone makers and low margins of the business.

Second, how will Videocon fund the acquisition, considering the ongoing turmoil in global credit markets. Another issue is how to revive the Motorola brand, which has seen its market share erode considerably over the past 12 months. Motorola has lost its No.2 spot to Samsung due to lack of strong products.

Last year, Motorola sold over 159mn mobil e phones globally. Its market share is down to around 14%, just behind Samsung, and way below Nokia, which is the No.1 brand with a market share of close to 40%.

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Airtel, Google come together for Airtel Live Portal

Indian telecom service provider Airtel has announced the launch of an all-in-one Internet portal called Airtel Live. This service is powered by Airtel broadband and software-cum-Internet giant Google.

Customers at airtellive.com will get free access to a number of Google products including Google Apps messaging and collaboration suite which comprises Gmail, Google Docs and Google Calendar. It will also include the Start Page feature which allows users to create a customizable home page.

Besides Google, Airtel has partnered with other Indian companies like shaadi.com, naukri.com and 24×7guru. With this partnership, Airtel Live will also offer exclusive deals and discounts to customers.

Atul Bindal, President, Airtel Telemedia services commented on the launch saying, “Airtellive.com is a milestone in Airtel’s broadband strategy and it builds upon the current broadband ecosystem infrastructure to establish an Internet destination for web applications.”

“It underlines our commitment towards simplifying and adding value to our broadband customers and driving the adoption of broadband in the country,” he added.

Users will definitely enjoy the Airtel Live experience as the collaboration includes two major powerhouses who will offer a good customer experience with their expertise and innovation.

Airtel, Google come together for Airtel Live Portal

BBC NEWS | World | Asia-Pacific | Olympic torch re-lit in Beijing

The Olympic torch has been re-lit at a lavish ceremony in Beijing, after arriving aboard a flight from Athens.

Chinese President Hu Jintao took part in the event at Tiananmen Square to welcome the torch to the city, which hosts of the 2008 Olympics in August.

Tight security was put in place at the square, amid concerns of possible anti-government protests.

Last week protesters opposed to China's actions in Tibet clashed with police at the lighting ceremony in Greece.

On Tuesday, the torch goes to Almaty in Kazakhstan, its next stop on a tour of 20 countries before returning for the opening of the Beijing games on 8 August.

See map of Olympic torch relay route

Square closed

Hundreds of schoolchildren turned out at Beijing airport, waving flags as the Air China plane arrived.

Students and workers sang the Olympic slogan "One World, One Dream" and waved pom-poms.

Security was tight in the centre of Beijing, with one underground station near Tiananmen Square closed, and the square closed off to vehicles.

'Timeless symbol'

Sunday's formal handover was held in the Panathinaiko Stadium in Athens, where the first modern Olympics took place in 1896.

The Chinese and Greek flags were marched in by Greek athletes to the strains of a band, before a circle of white-clad actresses dressed as ancient priestesses surrounded a podium as the torch was brought in.

Minos Kyriakou, president of the Hellenic Olympic Committee, passed the flame to chief Beijing organizer Liu Qi.

"The Olympic flame is the timeless symbol which stirs admiration, pride and faith [in] the Olympic ideals and values," said Mr Kyriakou.

"I hope the world community welcomes the flame and honours it".

Mr Liu pointed out that the summit of Mount Everest was on the torch's destination list, "testifying to the great strength of the Olympic movement in marking the progress of human civilisation".

The protesters tried to unfurl a banner which said "Stop genocide in Tibet", but failed to enter the stadium or disrupt the solemn ceremony.

At least six people were arrested.

Police had warned they would confiscate all banners, signs or objects that might be thrown.

OLYMPIC TORCH ROUTE

BBC NEWS | World | Asia-Pacific | Olympic torch re-lit in Beijing