Zee to buy 51% stake in Pacenet

Zee Telefilms is set to buy 51 per cent in Pacenet, a broadband service provider and technology company. Pacenet. After the acquisition, Pacenet will be merged into Zee's newly proposed cable entity, Wire and Wireless Ltd.

The balance 49 per cent will be retained by its current promoters - Jagjit Singh Kohli, Yogesh Shah and Yogesh Radhakrishnan.

Subhash Chandra, chairman, Zee Telefilms, told Business Standard that Pacenet had developed digitally advanced multi-functional set-top boxes which will have features such as video-on-demand, voice over internet protocol, pay per view and triple play services.

The digital set-top boxes will also be able to provide IP services on television apart from using the VoIP technology to make a call via a standard phone.

The pricing, depending on the features, will vary from Rs 2,000 to Rs 4,500. Chandra pointed out the valuation work is on and the deal will be completed in four weeks.

Currently, Pacenet offers broadband services using the cable network infrastructure of its franchisees. Known as one of the fastest growing Internet services providers, Pacenet has more than 25,000 home subscribers till date.

The company recently tied up with Netweb Marketing India, a partner company of Netweb US, for promoting and marketing VoIP products in the country.

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