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With India Rising, New Call Telecom Makes its Move

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With India Rising, New Call Telecom Makes its Move

 
October 28, 2014

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  By Rory J. Thompson, Web Editor
 


Sensing the time was right and the market was growing, mobile instant messaging and VoIP company Nimbuzz (News - Alert) shifted its global headquarters to India, which at the time a few years back, accounted for 20 percent of its 90 million user base.


Flash-forward to 2014, and that number has increased enough so that Nimbuzz presented itself as an enticing target. To that end, the Economic Times reports that U.K.-based ISP New Call Telecom just acquired a majority 70 percent stake in Nimbuzz for a reported $175 million.

While the full terms of the acquisition were not disclosed, it was revealed that Nimbuzz will act as a unit of New Call Telecom and will continue to be headed by Nimbuzz CEO Vikas Saxena, the Economic Times says.

Why now? New Call Telecom reportedly believes this acquisition will enable the company to integrate the Nimbuzz platform along with some new apps, with its home broadband and Wi-Fi services in India and eventually other parts of the world. In other words, they’re laying the groundwork now for some anticipated fast expansion.

It all makes sense because of what’s brought to the table. “Nimbuzz currently offers a cross-platform call and messaging app across Android, Windows, iPhone (News - Alert), Blackberry and on ancient Java based cellphones as well,” India’s MediaNama reported. “The app has features like file sharing, VoIP calls, chat rooms, stickers and free messaging among other things. It competes with other messaging apps like WhatsApp, LINE, Hike and WeChat and also VoIP services like Skype (News - Alert).”

That’s quite a package of offerings, and in India’s ever-growing marketplace, it will serve as a strong foothold for New Call Telecom to expand its world. While not a complete cash-cow, the Economic Times notes that mobile brand advertising currently generates around 60 percent of Nimbuzz’s revenues while international calling accounts for another 30 percent. New Call Telecom may well recoup its $175 million faster than anyone thought.




Edited by Maurice Nagle
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