Tuesday, August 21, 2007

Bharti Telesoft in talks to buy Jayaatsu

Bharti Telesoft, one of the largest players in the mobile value-added service (VAS) space in the country, is learnt to be in talks to acquire Bangalore-based software firm Jataayu. Sources did not specify the deal size as talks were in the initial stages.

According to sources, Bharti Telesoft is looking for acquisitions to expand its rapidly growing portfolio. The company has already deployed its products and solutions in 25 countries to over 100 networks, enabling service provision to over 150 million customers across five continents.

Its customers in India include Vodafone Essar, Idea Cellular, Tata Tele and Bharti Airtel, while globally, its client list includes telecom majors Vodafone and France Telecom.

In this context, Jataayu Software will be a strategic fit to Telesoft’s expansion plans as the Bangalore-based firm has emerged as a leading provider of mobile handset solutions and VAS infrastructure solutions in mobile messaging, browsing, synchronisation and provisioning, sources said.

India’s phenomenal telecom growth over the last 18 months has increased operators’ focus on VAS software. As per industry estimates, the telecom software market grew by over 50% in FY ‘06-07, garnering revenues of Rs 17,871 crore.

Additionally, with falling revenue per user, telcos are increasingly looking at VAS products to boost their bottom line. VAS currently accounts for an average 10% of an operator’s revenue compared to about 25% in developed markets.

Bharti Telesoft is best known for its e-recharge solutions, which are currently used by India’s GSM operators. Indian operators record more than 3 million e-recharge per day on Bharti Telesoft’s platform.

(Source: Economic Times )

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