In fact, in December last year, the group had changed the name of its cellular service provider in Punjab circle Modicom (a joint venture between ModiCorp and Hongkong-based regional telecom company Distacom) to Spice Com. Spice Telecom is another BK Modi-controlled cellular service provider operating in Punjab and Karnataka. As reported in The Financial Express on June 17 edition, quoting industry sources, Spice Telecom will now be officially operating out of Calcutta by replacing Modi Telstra's brand names. Earlier, the cellular brand of Modi Telstra was known as MobileNet that was later promoted as two separate brand names - Modi Telstra Digital for post paid customers and Modi Telstra cash card. Now, the brand will be called Spice Telcom.

With Telstra walking out of the joint venture, its 49 per cent stake was picked up by ModiCorp and associate Spice Telcom for close to Rs 75 crore. ModiCorp's associates - AIG Asian Infrastructure Fund and Distacom - picked up part of Telstra's stake. According to industry sources, the company will be undertaking an aggressive marketing policy to counter its new competitor Hutchinson Telecom marketed under Orange brand name that has bought out 95 per cent stake in Usha Martin Telekom Ltd.

Usha Martin was marketed under the brand name Command. According to sources, Spice Telecom will be entering the Calcutta market and there are ample hints about it in the latest invitation sent by the company which harps on Spice's motto - "excitement ahead". In fact, Spice with its unique selling proposition of "making life easier", is one of the fastest growing in the Karnataka circle having laid 1,100 km of optical fibre cable across the state.

BK Modi's interest in the erstwhile joint venture Modi Telstra was looked after legally through ModiSoft - another joint venture between ModiCorp, AIG Infrastructure and Hong Kong-based Distacom of the BK Modi group. ModiCorp and AIG Infrastructure hold 51 per cent in ModiSoft, while the balance is held by Distacom. The cellular service provider in Calcutta had ended the financial year to June 30, 1999, with a 15 per cent growth in revenue to Rs 66.20 crore. It is was expected to report Rs 80 crore in revenues in fiscal 1999-2000 and also breakeven. It is targeting a revenue of Rs 120 crore in the current fiscal.