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OnMobile renews ring back tone deal with BSNL

OnMobile Global

Mobile VAS and ring back tone company OnMobile renewed its deal with state-run telecom operator BSNL, the company said in a BSE notification. According to the deal,  OnMobile will continue to provide ring back tone customers in BSNL in South and East zones with an option to extend to the fourth year as well.

The deal assumes significance as India revenues at the company have been falling. In the quarter ended September 30, India revenues was 22% of the company’s total revenues compared to 28% of the revenues in the same quarter last year. India revenues was Rs 45.1 crore, down 21.6% from approximately Rs 58.09 crore from the corresponding quarter last year. In comparison, International business accounted for 78% of the total revenues or Rs 161.46 crore, up 8% y-o-y.

OnMobile had also mentioned that it had won western circles from Airtel for Ring Back Tone business to become the largest Ring Back Tone partner for Airtel in India. “This win increases our reach in Airtel from over 60 million subscribers to over 115 million subscribers,” the company said.

Voice technology divestment

Earlier this month, OnMobile divested some of its speech technology assets to France’s Voicebox Technologies. The divestment of the assets from its Telisma acquisition was worth €650,000 subject to adjustments, escrows and other conditions. OnMobile acquired Telisma for €11 million. Telisma was created in August 2000 as a spin-off from France Telecom’s Research and Development Laboratory funded by European venture capital firms.

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New products development

Onmobile had spent 2% of its revenues on developing its new products strategy and brands in the quarter ended June 30, 2015. The company continued to spend 2% of the revenue in the September quarter too. OnMobile CEO Rajiv Pancholy also revealed that the new products and offerings from Onmobile will be rolled out between March and June 2016.

Pancholy added that the new products will be launched only in selected geographies. “It would be in multiple geographies, but it will not be across all geographies, so very selected introductions. I think it’s safe to say that India would be one of the geographies,” he said in an analyst call.

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