  Videocon Group owned Data Solutions claims that it has entered into a telecom passive infrastructure arm with Aircel’s tower arm. Business Standard reports that the contract is spread over a period of 16 months and is valued at Rs 2000 crore.
The report further says that Datacom Solutions is ready for the commercial launch of the services.
However the reason for this announcement appears to be for an altogether different reason.
New entrants in the telecom mobile space have been more vocal about entering into infrastructure agreements and awarding orders for wireless equipment than the company which has bagged the contract. This is primarily because the new entrants except for SSTL’s MTS are falling behind their rollout obligations. By making such announcements and disclosures they want to project that they are indeed focused and geared up for the commercial launch.
For instance Loop Telecom claims to have soft launched its services in four circles. But TRAI figures show that it is yet to register any subscribers in these circles. One wonders what kind of soft launch is made by the operator. But with the mention of soft launch, it can certainly claim that it has rolled out its network.
Datacom had earlier disclosed that it has signed a MoU with Chinese company Huawei Technologies. Signing a MOU no way implies that the contract has been awarded to the firm.
Interestingly the agreement with Aircel is reported to be for 16 months. This period is unusually short when one compares with other infrastructure agreements in the industry which normally are in the range of 5-10 years.
Datacom was supposed to launch its services way back last year. But the management control dispute between the Dhoots and the Nahatas have halted the progress. Though the JV says that issues have been resolved, Datacom has certainly been left behind due to the issue. It is yet to rope in a foreign investor. It is difficult to arrange for funds through internal resources in telecom services industry.
One eagerly awaits the actual entry of these new entrants. |