Vox Spectrum acquires India 's Mack Telecom

NEW DELHI, December 15, 2006 – Vox Spectrum Limited, an international leader in computer-telephony integration solutions, has acquired Indian telecom networks builder Mack Telecom Services Pvt. Ltd., the companies announced Friday on the sidelines of the Telecom India 2006 Exhibition being held in the National Capital.

The U.S. licensed Vox Spectrum, which owns its own IPRs in the area of computer-telephony integration said its investment in Mack Telecom marks a major step in its plans to capture a share of India's burgeoning telecom market. With this investment, Vox Spectrum would be present in a range of Voice related services from digital voice logging, voice & data networks infrastructure for telecom operators to promoting Plantronics headsets in the country.

“We have been in this business for many years and see the telephony market as a major source of growth for our group in India . With this acquisition, we are combining Mack Telecom's established brand name and engineering capability in network building with our strong international experience and financial strength to service telecom operators and MNC vendors,” said Mr Vinod Krishnan, Managing Director of Vox Spectrum.

“Telecom Engineering, particularly Network Infrastructure set-up, has a huge potential with nearly US$20 billion of investment already committed by Indian telecom operators in their networks expansion over the next few years. Our group's commitment is to make Mack Telecom the most significant player in the Indian market” Mr Krishnan said.

Mack Telecom, with several hundred engineering staff, is among the most significant players in the Indian telecom engineering market, with an impressive client list that includes almost all MNC telecom equipment vendors and Indian telecom operators. The company also has a partnership with Qualcomm Inc, to provide CDMA (Code Division Multiple Access) technology training in India .

Vox Spectrum is part of a large private group, with operations in 5 countries and installations in over 11 countries. It is run by an elite group of managers, a majority of who are Indian nationals. With presence in North America, the Middle East and South Asia, Vox Spectrum provides technology solutions for monitoring and providing actionable intelligence from voice communication, to customers in the financial, call centre, government and security sectors.,

Apart from Mack, Vox Spectrum owns True Blue Voice India Pvt. Ltd, which distributes Plantronics Inc's headsets, and Timna Telecoms, a comprehensive, supplies, solutions and Services Company with operations in Middle-East and North Africa . Timna operates a Free Zone Enterprise (FZE) in the UAE and has three branches in Saudi Arabia.

“Size was increasingly becoming a constraint in working on bigger network rollouts for Mack Telecom. With Vox Spectrum coming in, we can comfortably say that we will take anything - from multi-crore turnkey projects, managing networks, outsourcing of engineers and overseas projects to simple Installation & Commissioning, electrical or civil works for telecom towers,” said Mr Madhava Reddy, former Managing Director of Mack Telecom, now Director (Marketing and Communications) with Vox Spectrum.

“We are already in discussions with our significant business partners so we can optimally utilise these enormous resources placed with Mack Telecom. One thing that we assure our customers of is that the resources will not just be used to set a dizzy path of growth, but equally to reaffirm what Mack is best known for - quality of work, timely completions and greater involvement in the customer's business,” he said.



BACKGROUND:
  • India is the fastest growing telecom (wire line & wireless) market in the world
  • At 150 million (August, 2006 ) subscribers it is already equal to the U.S. in numbers, though not Average Revenue Per User (ARPU)
  • Expected to touch 500 million telephones by 2010
  • Competition has made India the cheapest market for telephony in the world at US 1 cent per minute.
  • Congested Networks, Competition & Emerging Technologies mean operators need to invest far more to keep subscribers.
  • At $75 per new line (read per subscriber handling capability of a network) requires investment of around US$26 billion.
  • Of this, roughly US$ 20 billion worth of Capex (including on new 3G technologies and applications) already announced by operators
  • Some of the investment already under way.
  • For this expansion, 140,000 mobile towers will be required to be erected by 2007 and 350,000 by 2010.
  • Network rollout , a very fragmented market seeking bigger companies like Mack to step in and organise.
  • Rapid growth of telecom services is encouraging outsourcing of support activities of networks in a major way by both vendors and service providers.
For further information, please feel free to contact the undersigned:

Madhava Reddy
Director (Marketing & Communications)
Vox Spectrum Pvt. Ltd.
Bangalore - 560095
Tel: +91-98 4402 9447
Tel: +91-94 4899 2331

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