Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (955)	2/29/2000 5:01:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 1471

You've got m@il: lower duty on imports, no special status IT looks to be a case of well-begun, but half done. The internet service provider (ISP) industry is a bit confused, relieved and feeling let down, all at one go. First, the confusion. Though the peak customs duty rate for telecom equipment has been brought down to 5 per cent, what has left most ISPs with a feeling of being let down is that it addresses only one half of the issue. Many had been expecting duty cuts and recognition as an infrastructure industry to go hand-in-hand. The FM has been silent on the latter and that is what is leading to the disappointment. Said R Ramraj, CEO of Satyam Infoway, "Today, we need investments to grow." What Mr Ramraj was pointing towards was the need to invest loads of money in installing buildings and other infrastructure to set up international gateways and the like. The infrastructure recognition would have allowed ISPs to avail of various Sections such as 10(23G) which would have lowered the cost of funds. Still, the bringing down of the peak customs duty rate to 5 per cent is expected to have an impact on equipment import. Most ISPs need to import equipment such as routers, web servers, high-speed modems, hubs, ATMs and switches, which attract effective duty rates ranging between 41.5 to 60.66 per cent. Said Amitabh Singhal, of the ISP Association of India, "We now expect the effective duty rate to come down to an average of 22 per cent. But this needs to be examined closely with respect to individual pieces of equipment." The total project costs are now expected to come down by anywhere between 10 to 12 per cent, something that the ISPs are not content with. ... However, the one area where the vote is unanimously upbeat is the hike in automatic approval limit for acquisitions from $15m to $50m. Said Amitabh Kumar, director (operations), VSNL, "It is a decent figure and makes it possible to look at acquisitions realistically." Added Mr Ramraj, "It will certainly make acquisitions easier." ........ 216.34.146.179