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Almost 12 lakh STD/PCO operators in India, who are suffering from a
sharp fall in revenues following the downward revision in STD tariffs
over a month ago, have found help from unlikely sources. The big names
from the international and Indian IT companies are coming to their
rescue.
Thus, companies like Sun Microsystems, Compaq Computers,
SchlumbergerSema, Proton World International, Wincor Nixdorf, ACI
Worldwide, Aplab, BAeHAL Software, FSS, Gemplus, Infineon
Technologies, CMS Computers, Datacard Corporation and Pico-Peta
Simputers have come together to form a consortium that will transform
the old isolated STD/ISD/PCO booths into new technology-driven multi-
purpose communications powerhouses.
Alittleworld Pvt Ltd, which leads the consortium, hopes to bring all
PCO/STD booth operators under one banner and upgrade them to provide
high-speed Internet and a range of new services like utility bill
payment, low-priced Net telephony, point-to-point video-conferencing
and text/voice messaging.
A senior source at Alittleworld says the public will be able to access
the new services through pre-paid re-loadable smartcards to be issued
by the PCO/STD booths. "These cards can be purchased, loaded,
reloaded, used and refunded at all booths."
The central systems for transaction processing, billing, card and
application management will be set up by the supporting industry
consortium. Several banks have also come forward to participate in
this project because of the great synergy of smartcards with small-
value payments. To finance the venture the IT companies have decided
upon a revenue-sharing arrangement with booth operators as well as
equity participation.
Surjeet Singh Khunger, chairman of the newly-formed All-India Sanchar
Sewa PCO Society, says following the recent cut in STD tariffs, booth
operators have been losing close to 60 per cent of their revenues
every month as their earnings are based on a commission ranging from
20 to 25 per cent of their revenues.
With volumes not picking up post-tariff reduction, owning a PCO booth
has become a losing proposition for them, says Khunger. "While we had
made representations to the department of telecommunications things
did not really work out."
The plan of action envisaged is that a total of 22,500 booths will be
upgraded in 21 cities in the first commercial pilot phase - followed
by 1 lakh booths in the first full year of deployment. Two lakh
upgraded booths will collectively bring in investments of Rs 1,500
crore over three years, says Khunger. "Each booth owner will be
required to invest between Rs 40,000 and Rs 75,000 apart from
providing an already-existing establishment and labour."
Kunger says the setting up of the backend systems will be funded
through a key participation from IT industry giants as well as major
financial institutions. "It will be one of the most significant new
initiatives for employment generation, as the delivery of new services
will create a demand for new jobs centred around this initiative."