Upgradation: What PCOs need most

Mumbai: 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."