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August 6, 1999
Wipro and KPN form joint venture for Internet servicesWipro Limited and KPN, the Royal Dutch Telecom, a global telecom operator with revenues of $8 billion, have signed a memorandum of understanding to form a joint venture company to provide Internet services in India.
Wipro Net currently manages a nationwide fault tolerant network, 24-hours-a-day, 7-days-a-week, through communication hubs in eight major Indian cities.
Wipro Net has been the leading intranet / extranet services provider in the country for the last three years.
Joint venture structure
The shareholding pattern in the joint venture will be 55:45, between Wipro and KPN respectively.
The venture will continue to have the name Wipro Net Limited. In three years, Wipro Net plans to have an IPO.
The current management structure of Wipro Net will be augmented with functional experts from KPN. The vision of Wipro Net is to be # 1 in the business segment and # 1 in its quality of services driven by the Six Sigma processes, and among the top three in the residential market.
All services offered by Wipro Net will be branded under the Wipro name. Wipro Net will be an exclusive vehicle for KPN and Wipro for Internet protocol based communication services in India and for multinational customers of KPN in India.
Wipro Net will have connectivity to KPN's international IP network that will enable the joint venture to offer a superior quality of services to Indian customers.
"The formation of this joint venture with KPN will bring in contemporary IP service knowledge, peering arrangements and Internet experience into Wipro Net. The synergetic benefits of a global telecom service provider and a reputed IT company will accrue to Indian customers," says Wipro Corporation Chairman Azim Hasham Premji.
"With its established leadership in the business segment, Wipro Net is now well placed to achieve its goal of emerging as the leading Internet based communications services provider in India. KPN's involvement in Wipro Net is in line with our international strategy of offering global connections and a wide range of innovative services," said Hans Van Moorsel, CEO, KPN Asia Pacific.
"Within India, Wipro Net will provide us a platform to offer IP based convergent services as and when the regulatory situation opens up," he said.
Arun K Thiagarajan, vice-chairman, Wipro Limited, said: "Wipro has built up a strong communication service experience over the past three years. This, backed with superior expertise of both Wipro and KPN, a scaleable network and new suite of services will give us a definite edge over competition."
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