Spectranet – an ISP in Delhi NCR, Mumbai and Bangalore with other Internet related activities such as Data Centers, Managed Bandwidth etc is planning to exit the business and put Spectranet on the block for sale.
Spectranet was one of the early ISPs that offered unlimited data transfer plans at 256 Kbps. However, with the parent company Punj Lloyd achieving new milestones in Construction and Infrastructure business, Spectranet is a non-core business and hence Punj Lloyd wants to exit at the right time when Telecom valuations are touching the roof.
Since the scale of Spectranet operations is limited to 3 cities, the company may not be able to commend big premium. However, if it has good OFC network in all these 3 cities, it can still expect a decent premium as it will help existing players such as Bharti Airtel or Reliance Communications to scale their high EBITDA broadband business.
Frost and Sullivan projects the Indian Broadband Market to Rs 5,124 crore by 2012.