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  NEWS AND VIEWS
NEWS & VIEWS
Tuesday, January 10, 2006
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       DIGEST/INDIA

3G from Bharti in Seychelles
Bharti Tele-Ventures will shortly launch its 3G mobile services, in Seychelles. Telecom Seychelles, which has been providing mobile and basic telephone services in Seychelles for the last seven years under the Airtel brand, will invest 44 mn Seychelles rupees for rolling out the services The new 3G upgrade will provide fast and more reliable Internet access of up to 384 kbps as against 10 kbps in 2G or 30 kbps in GPRS.The 3G Network will be on the IMT 2000 band (3GSM) enabling complete alignment with the world standard. Besides the upgrade, new base stations will be added to expand its coverage to more islands.

Bharti Telesoft Sells 10% Stake
Three leading global venture capital funds -WestBridge Capital Partners, Sequoia Capital and Cisco Systems-have made a strategic investment of $13.5 mn in Bharti Telesoft. Bharti has offloaded 10% stake in Bharti Telesoft to the group of investors. Bharti said that the Silicon Valley-based Sequoia Capital is investing in India for the first time. The WestBridge Capital Partners has made an investment of $8 mn, with Sequoia Capital $3 mn and Cisco $2.5 mn. Bharti Enterprise, vice chairman, Rakesh Mittal said that this strategic partnership would establish a platform to share knowledge ad expertise to grow further.

"Our Indian base will cater to the needs of neighbouring countries also" 
                                                       -AndrewMellorSouth East Asia Regional Manager, Cramer

Service providers already have their inventory management systems in place. Don't you think you are a late entrant in this market?
We had been contemplating to enter this market for a while and we had presence in India through our partners, but now we have decided to start our own operations. It's the right time for us to enter this market. Most of the service providers have shown interest in the solutions that we offer. We are the leaders in software license revenue for inventory solutions and has been ranked as the preferred inventory management provider by leading system integrators across the world. We sensed from a number of perspectives-that we are achieving a new level of critical mass in the marketplace. Cramer combines network inventory and service provisioning into a network resource management solution.

How will you differentiate your service offerings from competitors?
We have more coherent road map and articulately described strategy for supporting horizontal integration of inventory systems. Inventory management is the center of the OSS universe and that all OSS integration should start with inventory and that's where we have a role to play. The first thing telecom companies do when they regroup is to take inventory. With practically the entire communications industry in the process of regrouping, especially service providers, suppliers of inventory-based solutions have services to offer. Also since, all the service providers are in an expansion mode in India-replacing and installing new base stations is one of the prime agenda. We see lot of business coming from this segment. We are installing around 4,000 base stations for TTSL as part of our deal. Apart from this we would be installing complete radio access network and other core things critical to the network.

Does your solution allow documentation and management of purchases at the same time?
Yes, there are players in the inventory space that allows you to document what you purchase rather than manage what you sell. But inventory and documentation are not in their own right attributable to process automation. The market dynamics have changed, absolutely, so it is not a matter of whether money is being spent rather, it's who's spending it and what they are spending it on. The trend is in creating efficiencies around the inventory. 

What about the ERP players in this space? 
We are SAP partners across the globe and companies that are using ERP of other vendors would not have any problem in integration of our solution. Our inventory management solution is fully compatible with any ERP. 

What's your strategy going to be for the Indian telecom market? 
We have recently bagged two clients in India-TTSL and VSNL. Since we have NDAs signed with them, we won't be able to give exact valuation of the deal. We are in talks with several other service providers such as BSNL and Reliance. All of them are quite upbeat about the solution that we offer. We want to capitalize on the growth that Indian telecom market. We will have our India office in Mumbai and another sales office in Delhi. We do R&D work in Bangalore along with our partner Sonata. At present our strength is around 38 people and we are planning to scale it to 50 people by the year end. Our Indian base will cater to the needs of neighbouring countries also, prominent among  them are SAARC countries suchas Sri Lanka, Bangladesh, and Nepal. Globally we serve around 80 telcos.

Rahul Gupta
rahulg@cybermedia.co.i
n              
         

ECI Expands India Ops
ECI Telecom, a global provider of telecommunication solutions to carriers and service providers, has opened a new research and development center in India. The new site joins ECI's existing R&D facilities in the US, Israel, and China. The R&D site will focus on ECI's broadband access solutions to develop its next generation product line and management solutions, and to expedite the penetration of new products to the region. Additionally, the center will focus on ECI's optical networking solutions, for testing and integration of the XDM platform and network management solutions. ECI is now hiring staff to build up the center.

SEA-ME-WE-4 Inaugurated
The SEA-ME-WE-4 (South East Asia-Middle East-Western Europe) cable has been inaugurated. It will connect three continents over a distance of almost 20,000 km with a capacity of 1.28 terabits per second. The sixteen consortium partners involved in the SEA-ME-WE-4 project jointly announced the inauguration. Bharti Tele-Ventures and VSNL are the Indian partners of the consortium. Bharti will offer E1, DS3 and STM-1 capacities on this cable. Additionally, the company would also be selling Full Circuits to their customers in India.

M O V E M E N T S
BSNL Takes Kuldeep Goyal as CGM

Kuldeep Goyal has been appointed as CGM of BSNL (Maharashtra). He will be responsible for the overall services in Maharashtra and Goa. Prior to this, he was the executive director, MTNL, Mumbai. Goyal is an engineering graduate from IIT Roorkee and belongs to Indian Telecommunication Service, 1971 batch. He has worked all over India, including: Gujarat, MP, Delhi, and Mumbai. He has also been on deputation to Yemen, for a project that was being implemented through Telecommunication Consultants India.

Vandrevala to Head Motorola's India Operations

Motorola has taken on Firdose A Vandrevala as a corporate vice president, and he will be head of the company's India operations. Vandrevala was earlier the chairman of Tata Teleservices and has spent 33 years with the Tata Group different capacities in the steel, power, and telecom sectors. Amit Sharma, who also served the India operations as vice president, regional management, South and Southest Asia, will move to Motorola's regional office. He will be responsible for corporate strategy for Asia. Vandrevala will be based Motorola's office in Mumbai.

MS Rana Appointed as Executive Director, MTNL, Mumbai
MS Rana has taken over as executive director, MTNL, Mumbai. Prior to this, he was chief general manager, landline services, MTNL, Mumbai. In his present assignment he will be responsible for the operations of MTNL for Mumbai, Navi Mumbai, and Thane and Mira-Bhayandar municipal areas. His priorities will be customer care and improvement in services and development. Rana graduated in electrical engineering from IIT Roorkee. He belongs to 1971 batch of Indian Telecommunication Service. In his 33 years career span in telecom industry, he has served in various positions and capacities at DoT, BSNL and MTNL.

TransWorks Takes Atul Kanwar as CEO

Atul Kanwar is the new CEO of TransWorks (an outsourcing company operating in the BPO/ CRM space). Kanwar has over 20 years of experience in IT and telecom industries. Prior to joining Transworks, Kanwar was the MD and senior vice president at e-Funds (a provider of technology and solutions in financial risk management and electronic payments space), where he was responsible for leading its outsourcing business.

Ramesh Anand to Head HeroITES' Sales in the US

HeroITES, has appointed Ramesh Anand as head of sales for the US. Anand will be responsible for identifying new business opportunities and also creating strategies to help HeroITES' US customers achieve and sustain optimal contact-center performance. Anand has more than 15 years of sales management and operational experience in leading internal and external customer care environment at several Fortune 500 companies. In his last assignment he was working as vice president-business development, North America, covering banking and financial services vertical for a leading BPO provider with delivery operations in India and the Philippines.

C A L E N D A R   O F   E V E N T S

NGN India 2006
3 February 2006, Mumbai   
                              
Contact:­Siddharth Sharma Tel:­+911151639673

The conference looks to discuss the current trends, status, and future evolution of the next generation networks standards. Issues revolving around NGN architecture, technology and QoS requirements, and evolutions will also be explored.

3GSM World Congress
13–16 February 2006, Barcelona  
                                              Contact: info@3gsmworldcongress.com

The conference will cater to the requirements of all sectors of the extended mobile industry value chain and will cover issues such as the convergence of telecoms, setting the industry agenda for 2006, and selling mobile solutions to the enterprise.

WiMax Summit 2006
21–24 February 2006, Paris, France       Contact: iben@upperside.fr

The event will largely be devoted to casestudies presented by both incumbent and new entrant operators who have setup WiMax infrastructures, and will discuss the technical and RoI issues in rolling out the WiMax services.

2nd India Broadband Summit 2006
Delhi: 7 March 2006, Mumbai: 10 March 2006     
                                                          Contact: rajv@cybermedia.co.in

The event will look at the growth of broadband in India in the last year, explore killer apps like IPTv and video on demand, and explore ways of building a content ecosystem.

Fiserv Gets Maheshwari as President

Dr Arun Maheshwari has joined Fiserv Global Services Group as its president. Fiserv is an IT company for the financial industry. He was earlier the MD, president, and CEO of CSC India. In 1996, he set up the India subsidiary of policy management systems. In January 2001, following a merger with CSC, the company's name was changed to CSC India.


MTNL Market Share Crashes

The market share of MTNL has declined to 32.18% in 2005 from 61.35% two years ago. Shakeel Ahmad, minister of state for communications and IT told the Rajya Sabha. He added, the market share in 2003 was 61.35%, which came down to 32.18% in 2005. He also told that MTNL had invested Rs 21.22 crore till March 2005 to form wholly owned subsidiary company, Mahanagar Telephone Mauritius Ltd (MTML) at Mauritius.

ZyXEL Sets-Up India Liaison Office
ZyXEL Communications, a networking and information security product manufacturing company and a privider of broadband access solutions, has set up an India liaison office in Mumbai. It will be headed by Milind Kamat who will be ZyXEL's principal representative for the country. ZyXEL has had a long presence in India through its established channel and has now restructured its operations in the country.

AUSPI's Budget Expectations
In its pre-budget proposals, the Association of United Telecom Service Providers of India (AUSPI) has sought the introduction of a single taxation regime, stating that the present taxation structure is complex and needs to be made simpler. It has also said that a single tax system would help in making the industry both investor and consumer friendly.

The body has also sought a reduction in revenue share license fee, stating that in addition to the license fee of 6–10% and spectrum fee of 2–6% (depending on the circles), the service providers also pay a service tax of 10%. 

Committee for Spectrum Set Up
The government has set up a committee consisting officials of the department of telecommunications (DoT) and the ministry of defense to release spectrum by the armed forces. Dayanidhi Maran, union communications minister, informed Parliament that a project definition team has been constituted by the ministry of defense. The timeframe for release of additional spectrum would be set out by this team. It is expected to submit its report by 20 January 2006.

TRAI Recommendations on IPv6
TRAI has issued draft recommendations on transition from IPv4 to IPv6 in India. The primary motivation for deploying IPv6 is considered to be its capability to expand the available IP address space to a large extent. The authority recommends setting up of test beds for experimentation in IPv6 technologies, creation of a National Internet Registry-in addition the current Regional Internet Registry presently located in Australia-and bringing awareness about IPv6 through the government agencies.

UTStarcom in Expansion Pact
UTStarcom, an IP-based end-to-end networking solutions and services provider, has announced that it has signed an expansion contract with BSNL in India. As part of the agreement, UTStarcom will deploy 90,000 lines of its AN-2000 IP-based Digital Subscriber Line Access Multiplexer (IP DSLAM) solution in the operator's nationwide broadband network. BSNL, the largest telecommunications services provider in India, has a presence in the fixed-line, cellular mobile, long distance, and data markets. The contract represents an expansion on a previously announced deployment of the AN-2000 IP DSLAM and related equipment for the second phase of BSNL's National Internet Backbone project.

Samsung to Make Handsets in India
Samsung has unveiled plans to set up a handset manufacturing facility at Manesar in Gurgaon, Haryana. This is Samsung's fourth overseas handset manufacturing facility, after China, Brazil, and Mexico. To be set up with an investment of $15 mn, this facility will have an initial capacity of 1 mn units per annum, which will be stepped up to 20 mn units per annum by 2010. Smansung is planning this facility to be a manufacturing hub for Southwest Asia.  The company plans to commence mass production by the end of Q1 06. The facility will employ about 200 people.

“We are actively talking to partners to develop this facility in India”
                                                               
-JayHilbert, senior VP, global sales and marketing, Somera

Somera's tag line talks about 'equipping networks for life' but what is the focus of the company?
We have ten years of transactional history dealing with 1,100 different service providers and 350 different manufacturers. We have the history and data value of the equipment and share that information with our clients thereby helping them in purchase of equipment. We enter the carrier, discover its asset and its location, do valuation, purchase it, refurbish it, and then sell it to others. Our core areas of focus are equipment brokerage, recovery and repair of equipment.

Having set up India operations how do you plan to move?
For the initial 3-4 months we will focus on business development. In India the focus will be on four things-discovery, valuation, disposition, and acquisition. We will put people onsite in service provider space for discovering and tracking the capability. And then buy equipment from large players in India and supply it to service providers in Eastern Europe, Central America, Latin America.

What is Somera's revenue projections for the Asia Pacific region? When do you plan to sign the first carrier?
In 2006 we are planning to do revenue worth more than $10 mn and within 5 years we plan to grow it to a three digit figure. In Asia Pacific there is a lot of buying and it is a very important part of our business. Even brokerage in Asia Pacific is underdeveloped. So, we are optimistic about this market. We plan to sign the first carrier in 60-90 days time.

Somera is also planning to offer repair service in the country. How do you plan to offer this in India?
Another area is repair, where we plan to do circuit board repair of products. We are actively talking to partners to develop this facility in India. Initially, we will focus on non-core products and move to core products with time. We are presently evaluating partners and we plan to identify by the first quarter of 2006.

Are you also planning to focus on large enterprises or will you limit yourself to only service providers?
In Asia Pacific, we will initially target service providers and focus more on wireless space. We will not focus on wireline as it is owned by PTTs and it takes a longer cycle to operate. Our focus area will be GSM and CDMA equipment and includes equipment like base station switching, microwave equipment, power equipment, and others. In a year or two we will focus on data networking and target large enterprise users.

Where are you planning to set up your logistics warehouse?
Somera has invested a lot in logistics management in terms of IT inventory and logistics. We have our main warehouse in the US, where we have inventory in the range of $100 mn. We are planning the next warehouse in Kuala Lumpur, which will cater to the Asia Pacific region. We have a partnership with DHL where we can have a virtual warehouse capacity in a week's time.We will address logistics channel and match demand with our own supply.

Who are your competitors in this field?
In terms of equipment, we have CTDI; in terms of equipment repair, Telmar; in terms of equipment repair and broking, Sanmina; and Flextronics for repair equipment. 

Pravin Prashant
pravinp@cybermedia.co.in
                       

Telecom Subscribers Growth: TRAI
The subscriber base for telephony services increased by 3.79 mn subscribers during November 2005, compared to 3.24 mn subscribers in October 2005. For mobile segment, 3.51 mn subscribers were added in November, with 2.33 mn GSM subscribers and 1.18 mn CDMA subscribers. In the fixed segment, about 0.28 mn subscribers were added. The total subscriber base of fixed lines has now reached 48.47 mn, and the gross subscribers' base has reached around 120 mn. This has taken the tele-density at the end of November 2005 to around 11%.

TI Deploys Veraz's Gateways
Veraz Networks, has provided Telecom Italia Sparkle (TI Sparkle) with its I-Gate 4000 media gateways to carry TI Sparkle's international traffic. Veraz's media gateways were deployed in Milan and successfully linked locations in Italy to multiple destinations in Europe, West Asia, and Africa. The deployment of Veraz products provides TI Sparkle and its customers with carrier-grade, toll-quality voice support for TDM and IP traffic over existing networks and the opportunity to expand TI Sparkle's deployment to include additional global locations as required.

TRAI on Promoting Comptt in IPLC
To promote competition in the IPLC segment, TRAI has recommended resale for IPLC, to be permitted w.e.f. February 2007. International cable carriers to be allowed to terminate cable capacities on existing cable landing stations and to provide IPLC to ILD operators. Such carriers to be licensed with the government as international infrastructure providers without any entry fee and annual revenue share.  

Wipro Acquires European SoC
NewLogic, and Austrian system on chip (SoC) design firm is all set to be completely acquired by Wipro, in an all cash deal for about $54 mn. The consideration includes cash payment on closure of the transaction as well as earn outs on achieving targeted financial conditions over a three year period.

The acquisition makes Wipro a global player in the wireless LAN and Bluetooth space. Wipro gains 120 specialists through this acquisition. The acquisition also provides Wipro with access to 25 patent filings and over 20 customers in the product-engineering domain. Europe currently contributes to 9% of Wipro's revenues for R&D services in embedded products.

BSNL, MTNL Mull JV
The government is considering to form a joint venture of BSNL and MTNL for setting up submarine cable links for ILD service. The equity ratio for the JV has not yet been finalized. All activities from issuance of tenders and awarding contracts would be undertaken by the new joint venture. BSNL had earlier announced that it would prefer its own independent ILD network.

The JV is likely to involve both the India-West Asia and India-Singapore undersea cables, currently being planned by BSNL. The connectivity projects to Singapore and Dubai are estimated to cost over Rs 1,200 crore.

COAI's Budget Wish List
The Cellular Operators Association of India (COAI) has sought extension of the tax holiday under Section 80 (IA) of the Income-Tax Act for another five years in its pre-budget recommendations to the government.

Under the present tax holiday, telecom operators are exempted from paying income tax for 15 years from the commencement of operations. It has pointed out that while other infrastructure sectors like power enjoy a 20-year tax holiday, the telecom sector has a 15-year tax holiday. COAI has also sought extension of the last date for availing the benefits to March 2007. Under the present system, companies that began operations before March 2005 are eligible for taking the benefits under the tax holiday.


       DIGEST/WORLD

HSDPA as Alternative to ADSL
Ericsson and MTN South Africa have demonstrated how 3G networks using WCDMA technology can enable broadband as well as prove to be a cost-efficient fixed broadband alternative, when combining HSDPA and fixed wireless terminals. The service makes broadband available beyond the environment of ADSL. Ericsson has also announced that along with Shanghai Research Centre for Wireless Communications (SHRCWC), it will collaborate in research projects on future telecommunications technologies including Super 3G and 4G.

McAfee Alert on Mobile Threats
Though the mobile security threat passed off without a scare last year, McAfee-a  software security firm-has warned that mobile security threats are expected to triple next year. It says, the danger will come as more consumers and business users switch over to smart phones. It expects that about 550 new malicious software programs would be created exclusively for mobile devices this year. McAfee adds that 2005 saw about 226 mobile viruses. Besides antimobile viruses, phishing attacks are also expected to increase.

Nokia Expands Mfg in China
Nokia plans to expand its mobile device production in Dongguan, China. It expects that by Q3 2006, when production is at full scale, the factory will employ approximately 1900 employees. The new facility will be located near Nokia's existing facility in Dongguan. Nokia currently has nine mobile device factories globally. Nokia's Chennai plant in India is expacted to be operational in the first half of 2006.

BMA Takes Axalto as Tech Partner
Axalto has joined the Bridge Mobile Alliance as a technology associate member. The company was selected to join this alliance to offer customized next-generation mobile technologies and applications for the Asia Pacific mobile markets. Within Asia-Pacific, the different telecom regulatory policies and disparate wireless technology standards between countries present challenges and cause mobile subscribers to experience uneven services across the region.

BT to Drive Fiat
BT will become Fiat's supplier of global telecommunications services through a contract worth 450 mn over five years. BT will also acquire Atlanet, a Fiat subsidiary providing domestic telecommunications services to Fiat and other non-Fiat business customers across Italy. Under the services agreement, BT will manage Fiat Group's global telecommunications requirements across 40 countries. Atlanet also provides BT with additional strength in IP services and incremental network coverage.

“We will soon have bandwidth accelerators for mobile operators”
                                                    -JerryMKennelly president and CEO, Riverbed Technology

As networks come under increasing pressure to handle more data, latency is becoming a big issue. San Francisco-based Riverbed Technology promises to solve the problems of latency and bandwidth that plague a wide variety of applications over distributed networks. Ideal for a multi-location company, its products optimize WAN performance and reduce WAN traffic by up to 95% accelerating applications by up to 100 times. Jerry M Kennelly, president and CEO, Riverbed Technology sopke to VOICE&DATA about the India plans and what WAN acccelerator are all about. Exerpts:

How is your WAN accelerator different from products already available in the market?
Our product does not interfere with the bandwidth capacity rather it optimizes the traffic on the networks and reduces  the latency in delivering data. This in effect means the end user gets faster delivery or downloads where as more bandwidth capacity is freed for other things. It is not a cache and delivery technology, which is used in most of the bandwidth optimization solutions. We use cache, but in different manner. Our technology caches at the binary level not at the file or data level. Which means the number of trips for data transfer is reduced by almost 60-65%. File cache means they accelerate the files access; our product also reduces the number of servers. It is not an expensive technology and requires just two boxes on the access ends of the network. And, it is compatible with any switch or router available in the market today. It also works on the satellite networks where latency is a big issue. The RoI on this product is visible in less than six months.

What is the cost per unit? How many customers have installed Riverbed technology?
In the coming days there would be no network person dreaming to increase the performance without a WAN accelerator. Within a short span of 16 months we have installed 2,600 units and globally there is a potential for almost five million units. A WAN accelerator unit can cost anything between $15,000-20,000. Today most of the markets for this product can be called green flied because the network traffic is going up and congestion increases, need for these products would go up. For Riverbed there are over 325 revenue customers. In India we have eight multinational companies who are using our accelerators.

What about your India presence?
We have HP as our OEM distributors. We are also marketing and selling our products through EMC. Apart from these we have 90 resellers and 40 country distributors. These contribute to almost 85% of our revenue. In India we provide technical consultancy and support to network integrators such as Datacraft and Wipro Infotech. But the Indian market is calling us and we will increase our presence here.

What kinds of technical improvement are expected in future?
We will soon be coming out with a laptop and mobile version. This would increase the bandwidth being delivered through the Wi-Fi hotspots or the wireless medium to these devices. Similarly we are also working on bandwidth accelerators for the mobile operators, ISPs, and telecom service providers. With managed services being increasingly being offered by these service providers, our technology is ideally suited for such offerings where more network traffic speeds can be increased without adding more bandwidth. Currently, the awareness level for our product is not high. We are looking at educating the network integrators and end customers on this.

Anurag Prasad
vadmail@cybermedia.co.in
     

 

P R O D U C T S

3Com Extends Security and Convergence Support for Enterprises
3Com has introduced the a stackable LAN switch designed specifically to address small-to-medium enterprise customers' growing need for robust security and support of Voice over IP (VoIP) and other convergence applications. The new 3ComR Switch 4500 family combines standard-based security for user authentication; support for the new TippingPointT X505, an integrated security platform built upon intrusion prevention system (IPS) technology; and 'plug-and-play' support for multiple vendors' VoIP services. Designed using open industry standards, the 3Com Switch 4500 is available in 26-port and 50-port models. It includes layer-2 switching and layer-3 routing functionalities. There are also models with power over Ethernet. The switch also supports 802.1X authentication. The switch also supports device authentication through RADA (Radius authentication of device access) for authentication of devices that don't support 802.1X. The Switch 4500 26-port is priced at $1,095. The Switch 4500 50-port is priced at $1,995. The Switch 4500 PWR 26-port is priced at $2,295. The Switch 4500 PWR 50-port is priced at $4,295. 

Avaya's IP-Based Solution for SMEs

Called the IP Office, Avaya has launched it IP-based contact center solution for SMEs. It enables the organization with features such as conferencing, messaging, and contact center suite of solutions. Being an IP product, it can offers voice and data on the same network, centralized

messaging, up to 480 port system, 64-party conferencing. For the contact centers it also offers features such as reporting applications, conversion of text to speech, firewall, and built-in voicemail. Avaya aims for a 30% percent market share with its IP-based contact-center solution.

Rural Broadband
In a move that reinforces the place of mobile as a provider of rural, broadband connectivity, Telstra has announced that it will rollout a W-CDMA network that will cover 98% of Australia's population. Telstra will transmit voice and multimedia services, including Internet access and video calling, in the 850 MHz spectrum band, using W-CDMA. Signals carried over this frequency travel further than those carried over standard W-CDMA frequencies, such as 1900 MHz and 2100 MHz, allowing each base-station to provide coverage to a wider area.

3G/WCDMA Scores a 100
The Global mobile Suppliers Association (GSA), six 3G/WCDMA networks at least have launched commercial services globally, pushing the total number to 100 networks in 42 countries. This compares with 60 commercial networks in 28 countries at end 2004. It means that over two-thirds of the WCDMA license holders worldwide have launched 3G services.

WCDMA networks today are serving more than 40 mn subscribers, an increase of 140% since the end of 2004, and achieving an average monthly growth, which exceeds 2.1 mn subscribers. The number of WCDMA networks which have entered commercial service in 2005 stands at 40, which is over 80% of all 3G networks that were launched. 

Mobile WiMAX Let Loose
IEEE has approved the 802.16e standard for WiMax. The standard amends and extends the IEEE 802.16 WirelessMAN standard, which addressed wireless MAN for broadband wireless access but previously supported only fixed (stationary) terminals. The amended standard specifies a system for combined fixed and mobile broadband wireless access, supporting subscriber stations moving at vehicular speeds in licensed bands under 6 GHz. The 802.16e standards development project, begun in late 2002, completed its final draft in October 2005. The work was iterated through twelve drafts based on thousands of comments and hundreds of contributed documents.

Seamless Hand-off
A successful demonstration of seamless location, roaming, and hand-off of voice calls between Wi-Fi and cellular networks was recently accomplished, using a dual mode handset with a single number. Applicable to data and video services as well, this capability will enable providers to deliver multimedia services to a range of devices and maintain service continuity and QoS across different access networks. The vendors that took part in this demonstration were: Cisco, Apertio, HP, and SIPquest.


      DIGEST/BPO

Microsoft Launches New Facility
Microsoft has inaugurated its new India facility, located in Bangalore. It will house teams from Microsoft's global customer service and support organization as well as the product and services marketing team of Microsoft India. Established in October 2003, the Microsoft Global Technical Support Center (GTSC) in Bangalore provides technical resolution services to Microsoft's English-speaking customers and partners across the globe. 

JP Morgan to Offshore Jobs
JP Morgan plans to off shore 30% back office jobs to India. It plans to hire 4,500 graduates in India over the next two years (by 2007). Bulk of its processing of foreign exchange trades will be carried out at its centers at Mumbai and Bangalore. JP Morgan is also looking to tap talent for its US operations from India. Some of those hired, have already been transferred to the US. It plans to scale up to 9,000 people in India by the end of 2007.

Allsec Acquires B2K
Allsec Technologies, a Chennai-based BPO service provider, has signed an agreement to acquire 100% equity in Bangalore-based B2K, from its existing shareholders and will take immediate control of its operations. The Allsec board approved the deal. B2K is an integrated contact-center with a 600 seats, 51,000 sq ft facility located in White Field, Bangalore and is involved mainly in the technical support business.

24X7 Customer Opens New Center
24X7 Customer, a Indian CRM services provider, has announced the establishment of a new 1,700 seat facility in Bangalore (India) to offer services in life and motor insurance. The services rendered through this new facility will be delivered to the insurance firm Aviva. 24X7 Customer has been serving the UK and Canadian customers of Aviva since April 2003. Currently, the CRM services provider employs 1,100 people. In a related move, the company has also announced plans to set up a 1,800 seats center in Chennai.

“Commercial and SMB market would grow two or three times faster”
                                             -MaciejKranz, senior marketing director, Desktop Switching Business Unit, Cisco

Cisco has been successful in maintaining its leadership position in the switching market. What steps are you taking to lead the market in providing new infrastructure technologies?
If you think, from the switching perspective, about designing the products, it's not about just the data in mind, but the entire blueprints and architecture of the system. Security is going to be the key for infrastructure. We enable security with infrastructure requirements and components of security in switching and then making them interactive to devices for managing network. So we provide end-to-end solution for the network. In the coming days, you can expect more wireless integration into the switching infrastructure. And that's where there's a shift of focus from enterprise to SOHO and SMB segment.

While the thrust of the company in India is research, is it also open to manufacturing some of its products here?
We're still investigating different strategies for the Indian market. And things that we are definitely considering are whether we should focus on products specifically for the Indian market or leveraging manufacturing infrastructure for other parts of the world. So, we're still in the process of evaluating these functions. But, as John Chambers said that India is something that we're looking at very seriously.

What applications and products are going to drive Cisco's future business in India?
We're taking a very comprehensive view of the market and a long-term investment view. When we are talking about enterprise, we have definitely had a long-standing and very good relationship with a lot of enterprises in India. And when we are talking about the just introduced products into this market and the space, the focus automatically goes on the SMB market. And then the third one is service provider, which is again growing very fast. Scalability is something they're turning to us for.

How has Linksys acquisition affected SOHO market strategy?
When we acquired Linksys, the focus was more on providing easy to home and home products but now we have been leveraging this pace as a starting point to use our home vision.

Why a sudden shift from enterpriseto SMB and SOHO segment?
Cisco has a big commitment to the SMB market. We introduced voice products into the SMB market at the same time as routing and security devices. And again, the key is not actually coming with the device but coming up with the integrated network. One example of it is really network management platform for SMB called Cisco Network, ware systems, and it has basically got full user integrated; you can use it to travel through the net, switching, routing, wireless and security devices as one entity. So we've done our homework We spend a lot of time before we engage with engineers and then see what other requirements are. In general, majority of our business comes from enterprises. John Chambers has been saying this that commercial SMB, plus the service provider market are basically the high growth segments of the market for Cisco. So I would expect that the commercial and SMB market would definitely grow two or three times faster than they tend to around the world.

Rahul Gupta
rahulg@cybermedia.co.in

IBM to Start Consulting SVCS
IBM plans to enter the remote offsite consulting services sphere in 2006 for its international clients. The company will provide implementation of solutions, including SAP configuring and strategic solutions from India to its clients located in remote corners of the world. The company considers India as the largest hub among all the four hubs outside the US. The company's Indian staff strength increased from 9,000 in 2003 to 23,000 in 2004. Although the present manpower strength was not revealed, IBM expects that it will continue to grow at same pace.

Sapient Provides SVCS to Vertex
Sapient, a US-based IT services provider, has been selected by Vertex Financial, a UK-based financial services outsourcing provider, to manage and operate its offshore software development capability. The contract spans over six and a half years. Under the terms of the contract, Sapient will provide application support and development services to Vertex. The new contract is an extension to a three-year relationship between the two parties. In a related move, Sapient will set-up a new office close to that of Vertex in Cheltenham, UK.

InterGlobe Invests $2 mn in IT, BPO
InterGlobe Technologies, an Indian outsourcing service provider specializing in the travel segment, has expanded its operations with the opening of an IT and BPO services facility.According to Rahul Bhatia, MD, InterGlobe, the company has invested about 2 mn in developing a facility, with 500 production seats in Gurgaon, near New Delhi. He added that the company plans to set up similar facilities in other parts of the country. About 70% of the company's operations focus on the IT related aspect of the travel vertical including software development and other related actives.

N E W S

When Disaster Strikes: Don't Dial, Just Text it
The mobile phone has become the device most people turn to in an emergency. Mobile networks experience huge increases in traffic immediately following a disaster and high-levels of demand continue for many days afterwards, according to data in a study published by the GSM ssociation (GSMA), the trade association representing mobile operators worldwide. 

The study by Enlightenment Economics shows how call volumes in Tamil Nadu (in southern India) for example, were up to 30% higher than normal levels for several weeks after the Tsunami last year struck that region. Similarly, voice usage soared 275% and text volumes by 350% in the areas most affected by the flooding in southern Germany in August 2005. Call volumes also rose dramatically following the bombings in Istanbul in November 2003. 
Importantly, while mobile phone operators experience similar surges on New Year's Eve or on the occasion of a big football match, in a disaster situation they usually have little time to prepare. If users send text messages in the immediate aftermath of a disaster, rather than make voice calls, they use less network capacity, making it more likely their message will get through.
“Anyone caught up in a natural disaster or other emergency is understandably desperate to reach their loved ones, call for help or pass on important information,” said Tom Phillips, chief regulatory and government affairs officer of the GSMA. “Mobile phones are the best way to do that, but people in a disaster zone should try to text, not talk.” 
Traffic data after disasters suggests that aid agencies and individuals caught up in the mayhem both rely heavily on mobile networks to find out information specific to their needs. The study, which examines communication patterns after the Tsunami in the Indian Ocean, Hurricane Katrina, the Bam Earthquake and several other catastrophes, found that mobile phones play a vital role in reconnecting dispersed people and efficiently matching aid to the particular needs of affected communities. 
After a natural disaster, the study found that mobile phone networks can often recover faster than fixed networks. Following Hurricane Katrina in the US, the use of portable base stations allowed operators to restore coverage relatively quickly. In cases of extreme congestion, operators sometimes reduce audio quality so that more calls get through.

Courtesy: GSM World 

Intelenet to Acquire Sparsh
Intelenet Global, a Barclays-HDFC BPO joint venture, will acquire Sparsh, the BPO services subsidiary of Spanco Telesystems and Solutions, an Indian systems integration firm. Intelenet will pay in cash for 51% of the valuation of Sparsh, while the rest will be issued to Spanco as post issue share capital. Sparsh has seven operations centers across India and employs 4,000 people. The acquisition is subject to customary regulatory approvals.

Genpact Signs Pact with Wachovia
Genpact (formerly Gecis) a pioneer in global outsourcing space, and Wachovia, a provider of financial services in the US, have signed an agreement under which Genpact would establish an offshore operation to support the latter's business process outsourcing efforts. “The seven-year arrangement will provide Wachovia access to Genpact's global operations and initially would be located in India,” a joint statement said here. 

Satyam Opens Third BPO Center 
Nipuna, the BPO services arm of Satyam computer services, an Indian IT services company, has opened its third Indian BPO center in the South Indian city of Madras (Chennai). According to a company press release, the center will service the requirements of specific process verticals including the animation sector. The Chennai center is the third such center set up by Nipuna after Hyderabad and Bangalore.

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